Press Release: Nestle: Three-month sales 2025: -2-

Nestlé

86.16 CHF -1.58%

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By channel, organic growth in retail sales was 2.5%. Organic growth of out-of-home channels was 6.6%. E-commerce sales grew organically by 15.1%, reaching 20.1% of total Group sales.

2. Operating segments

Nestlé

Nestlé Waters &

Total Zone Zone Zone Health Premium Other

Group Americas AOA Europe Science Nespresso Beverages Businesses

Sales

3M-2025

(CHF m) 22 601 8 639 5 539 4 353 1 593 1 595 809 73

Sales

3M-2024

(CHF

m)* 22 092 8 639 5 344 4 248 1 511 1 503 779 68

Real

internal

growth

(RIG) 0.7% 0.1% 0.7% - 0.6% 4.8% 2.6% 1.6% 3.9%

Pricing 2.1% 1.7% 2.4% 3.0% - 0.7% 3.2% 2.0% 2.5%

Organic

growth 2.8% 1.9% 3.1% 2.4% 4.2% 5.7% 3.6% 6.4%

Net M&A 0.1% 0.1% 0.0% - 0.1% 0.1% 0.4% 0.0% 0.0%

Foreign

exchange - 0.5% - 2.0% 0.6% 0.2% 1.1% - 0.1% 0.2% 0.9%

Reported

sales

growth 2.3% 0.0% 3.6% 2.5% 5.4% 6.1% 3.9% 7.4%

*2024 figures restated following the combination of Zone North America and Zone Latin America to form Zone Americas and Zone Greater China becoming part of Zone AOA as well as Nestlé Waters & Premium Beverages becoming a Globally Managed Business, as of January 1, 2025.

Zone Americas

In a challenging macroeconomic environment with fragile consumer confidence, we delivered a solid performance in Zone Americas. In North America, organic growth was broadly flat and we returned to positive RIG, with market share gains across a number of categories and reducing share losses in frozen foods and coffee creamers. In Latin America, growth was pricing-led, driven by coffee and confectionery. Across the Zone, we continue to focus on executing our strategy to drive further improvement in performance, despite the uncertain external context.

Segment performance summary

-- Organic growth was 1.9%, with 0.1% RIG and 1.7% pricing.

-- Reported sales growth was flat versus the prior year at CHF 8.6 billion,

including a -2.0% impact from foreign exchange movements.

-- In North America, organic growth was 0.1%, with 1.1% RIG and -1.0%

pricing. In Latin America, organic growth was 5.1%, with -1.6% RIG and

6.7% pricing.

-- By market, growth was led by Brazil, with some weakness in Mexico and

Canada.

-- Market share gains were achieved in portioned coffee, ambient culinary

and PetCare; market share developments in frozen food and in coffee

creamers show some recent signs of an improving trend.

Key organic sales growth drivers by product category

-- Confectionery was the largest growth contributor, led by strong pricing

actions driving double-digit growth in Garoto in Brazil and Tollhouse in

the US, and supported by chocobakery expansion.

-- Beverages (including coffee and coffee creamers) delivered mid

single-digit growth, with growth momentum for Nescafé, more than

offsetting a sales decrease in Coffee mate.

-- Nestlé Professional grew at a high single-digit pace, with positive

contributions across all segments.

-- PetCare posted low single-digit growth, with solid growth for

science-based premium brands partially offset by weaker category growth

impacting sales in mainstream dog brands and in snacks.

-- Dairy reported mid single-digit growth supported by a lower prior year

base of comparison.

-- Frozen food continued to decline, but at a slower rate than during 2024,

driven by an improved trend in pizza and snacks.

-- Infant Nutrition recorded negative growth, with continued sales declines

in Gerber and Nido.

Zone Asia, Oceania and Africa

In Zone AOA, growth was broad-based and led by pricing. By category, growth was strongest in confectionery, where we achieved positive RIG and market share gains while taking pricing actions. Growth was also notable in strategic focus areas of culinary and emerging markets PetCare. Most regions delivered positive organic growth, with the strongest contributions from Central & West Africa, the Philippines and India. In China, growth in the quarter was positively impacted by sales phasing with distributor inventory increases in some categories, in a challenging, deflationary environment where consumer demand remains flat.

Segment performance summary

-- Organic growth was 3.1%, with 0.7% RIG and 2.4% pricing.

-- Reported sales increased by 3.6% to CHF 5.5 billion, impacted by foreign

exchange movements, which increased sales by 0.6%.

-- In Greater China, organic growth was 1.7%, with 4.0% RIG and -2.3%

pricing. In the rest of the Zone, growth was led by Central & West Africa,

the Philippines and India.

-- Key market share developments were gains in confectionery, PetCare and

Infant Nutrition and losses in culinary and soluble coffee.

Key organic sales growth drivers by product category

-- Confectionery grew at a high single-digit pace, driven by KitKat and

supported by the continued rollout of the chocobakery range.

-- Culinary delivered mid single-digit growth fueled by solid sales momentum

for Maggi across formats and regions.

-- Infant Nutrition and dairy posted low single-digit growth, led by NAN and

improved growth momentum for Milo.

-- Coffee posted low single-digit growth, driven by Nescafé soluble and

ready-to-drink offerings.

-- Nestlé Professional achieved mid single-digit growth, across

geographies and product segments.

-- PetCare posted mid single-digit growth, with strong double-digit growth

in emerging markets partially offset by category softness in developed

markets. From April 1, we are positioned to accelerate our PetCare

business in South Korea, integrating it into Nestlé after exiting a

JV structure.

Zone Europe

Growth in Zone Europe was broad-based across markets and categories, in an ongoing fragile consumer environment. We delivered pricing-led growth in confectionery and coffee and RIG-led growth in PetCare. Customer negotiations to implement pricing actions were navigated with limited disruption, in a continued competitive environment. Market share trends are improving across most country-category combinations.

Segment performance summary

-- Organic growth was 2.4%, comprising -0.6% RIG and 3.0% pricing.

-- Reported sales increased by 2.5% to CHF 4.4 billion, including 0.2%

impact from foreign exchange movements.

-- Growth was broad-based by category and market, with the strongest

contributions from Türkiye, France and Iberia while growth in

Germany was negative.

-- Market share gains were achieved in PetCare and coffee, with reducing

losses in confectionery and food.

Key organic sales growth drivers by product category

-- Confectionery posted high single-digit growth, led by pricing, with

KitKat the main growth driver.

-- PetCare delivered low single-digit growth, led by Purina ProPlan and

Purina ONE. Growth was RIG-driven and broad-based across markets.

-- Sales in Nestlé Professional grew at a double-digit rate, driven by

beverage solutions.

-- Coffee posted low single-digit growth, with solid growth in Starbucks

products partially offset by slower growth for Nescafé soluble as we

took action on pricing.

-- Infant Nutrition recorded low single digit-growth, reflecting soft

category trends.

-- Food saw a decline in sales, impacted by some customer disruptions.

Nestlé Health Science

Organic growth slowed in Nestlé Health Science, with mixed performance across the business. In VMS (Vitamins, Minerals and Supplements), we are executing well in our premium brands, with continued double-digit growth. But overall VMS growth was held back by our discontinuation of some private label business and by weaker performance in Nature's Bounty, where consumer uptake has been slower than expected following resolution of last year's supply issues. In Active Nutrition, an acceleration in Orgain was partially offset by weaker performance in Vital Proteins in a more competitive environment. In Medical Nutrition, we grew strongly in adult medical care products, but saw softness in Zenpep after changes to the reimbursement model in the US. To address the mixed performance across Nestlé Health Science, we are prioritizing investment behind our strong premium brands and focusing on strengthening innovation and improving consistency of execution.

Segment performance summary

-- Organic growth was 4.2%, with 4.8% RIG and -0.7% pricing.

-- Reported sales increased by 5.4% to CHF 1.6 billion, including a positive

foreign exchange impact of 1.1%.

-- Market share was stable in both Medical Nutrition and VMS, with losses in

Active Nutrition.

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