Nestle: Three-month sales 2025: Delivering broad-based growth, executing on strategy

[Ad hoc announcement pursuant to Art. 53 LR] This press release is also available in Français (pdf) and Deutsch (pdf) Follow today's event live 10:30 CEST Investor call audio webcast Full details on our website ............. Vevey, April 24, 2025 Three-month sales 2025: Delivering broad-based growth, executing on strategy Laurent Freixe, Nestlé CEO commented: "In an environment of heightened macroeconomic and consumer uncertainty, Nestlé delivered organic sales growth of 2.8%, with RIG of 0.7% and pricing of 2.1%. Growth was broad-based across markets and categories, with improving market share trends across many businesses, particularly our billionaire brands. We have made further progress in delivering our strategy. Our 'Fuel for Growth' cost savings program is on track, providing the resources to help accelerate performance. In the quarter, we invested to strengthen our core business, achieved good consumer traction in the roll-out of our 'big bet' innovations such as Nescafé Espresso Concentrate, and saw some encouraging early improvements in our largest underperforming business cells. We are continuing to make changes throughout the organization to increase alignment and focus, with steps to harmonize our structure in Zone Europe and enhance our capabilities in R&D . Performance in the first quarter was in line with our expectations, and our 2025 guidance remains unchanged. This is based on our assessment of the direct impact of current tariffs and our ability to adapt. The indirect impacts - on consumers and customers, as well as currencies and commodity prices - remain unclear at this stage. Overall, the situation continues to be dynamic, with heightened risks and uncertainty. Our 277,000 committed colleagues are focused on successfully executing our strategy: driving efficiencies and investing for growth to accelerate our categories and improve market share." Sales performance summary Total Group Zone Americas Zone AOA Zone Europe Nestlé Health Science Nespresso Nestlé Waters & Premium Beverages Other 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. Financial highlights Delivering broad-based organic growth in an uncertain environment Organic sales growth of 2.8%, with real internal growth (RIG) of 0.7% and pricing of 2.1%. Pricing actions taken to address input cost inflation in coffee and cocoa, with limited customer disruption. Actions targeted with aim to recover input cost increases while maintaining medium-term consumer penetration. RIG reflected short-term impacts of consumers and customers adjusting to price increases. Operational and strategic progress Good progress on strategy to accelerate category growth and improve market share Investing to strengthen the core, with positive market share momentum for billionaire brands. Roll-out of innovation 'big bets' on track; encouraging consumer response to Nescafé Espresso Concentrate and gourmet pyramid-shaped cat food; recent launches of chocobakery across Latin America and AOA. Continued active management of 18 key underperforming business cells, with early indications of improvement. Operational management driving broad growth across categories Strongest organic growth delivered in confectionery (8.9%) and coffee (5.1%), led by pricing, with double-digit increases in some markets. PetCare organic growth (1.6%) was RIG-led and reflects some market softness, especially in the US, but with continued market share gains in most markets. Nestlé Health Science organic growth slowed to 4.2%, reflecting mixed performance. Further simplification of organization to support effective execution Advancing organizational change after moving rapidly in 2024 to create alignment and focus. Continuing to eliminate duplication and accelerate innovation, including steps to harmonize the organization in Zone Europe and enhance our capabilities in R&D. 'Fuel for Growth' cost savings program progressing to plan On track to deliver CHF 0.7 billion incremental cost savings in 2025, to date primarily driven by realization of procurement savings. 2025 guidance unchanged 2025 guidance remains unchanged, based on our assessment of the direct impact of current tariffs and our ability to adapt. Organic sales growth expected to improve compared to 2024, strengthening over the year as we continue to deliver on our growth plans. UTOP margin expected to be at or above 16.0% as we invest for growth. Overall, the situation continues to be dynamic, with heightened risks and uncertainty. Follow today's event live 10:30 CEST Investor call - audio webcast Full details in Events PDF press releases: English (pdf, 311 Kb) Français (pdf, 266 Kb) Deutsch (pdf, 316 Kb) Contacts: Media: Christoph Meier Tel.: +41 21 924 2200 mediarelations@nestle.com Investors: David Hancock Tel.: +41 21 924 3509 ir@nestle.com Sales review 1. Group Total reported sales increased by 2.3% to CHF 22.6 billion, including impacts of -0.5% from foreign exchange movements and 0.1% from net acquisitions. Organic growth was 2.8%, in a period of fragile consumer confidence. Pricing contribution increased to 2.1% as we took pricing actions to address input cost inflation in coffee and cocoa-related categories. Despite the significant level of the increases in many markets, the actions were implemented with limited customer disruption. RIG was 0.7%, reflecting soft consumer demand and the short-term impact of consumers and customers adjusting to price increases. By category, confectionery and coffee were the largest organic growth contributors. This growth was pricing-led, with double-digit increases in some markets. Our focus in these two categories is on smart pricing action to fully address input cost increases where possible, while maintaining medium-term consumer penetration. Where larger price changes were implemented, in some cases we saw a pronounced initial impact on RIG, which is easing as consumer behavior and the competitive environment adjust and stabilize. Outside confectionery and coffee, organic growth was more modest, but RIG was positive across all other reported categories. By geography, all regions contributed to positive organic growth. In developed markets, organic growth was 1.6%, driven by RIG of 1.4% along with positive pricing. In emerging markets, organic growth was 4.5%, driven by pricing of 4.8%, with RIG slightly negative. 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 Total Group Zone Americas Zone AOA Zone Europe Nestlé Health Science Nespresso Nestlé Waters & Premium Beverages Other 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 offse