Sweets (+8.9%) and coffee (+5.1%) among the most dynamic sectors.

In Q1 2025, Nestlé reported organic sales growth of 2.8%, with real internal growth (RIG) of 0.7% and prices of 2.1%. The group implemented pricing actions taken to address input cost inflation in coffee and cocoa, with limited impact on customers. Targeted actions were taken with the aim of recovering input cost increases while maintaining consumer penetration in the medium term. The RIG reflects the short-term impacts of consumer and customer adaptation to price increases.

The company reports "good progress in the strategy to accelerate category growth and improve market share. Among the actions, there are investments to strengthen the core business, with a positive trend in market share for billion-dollar brands. In this scenario, the consumer response to Nescafé Espresso Concentrate and pyramid-shaped gourmet cat food was "encouraging". The quarter was also characterized by the launches of chocobakery in Latin America, Asia, Oceania and Africa. Active and continuous management continues in 18 key sectors that performed below expectations, with early signs of improvement.

The strongest organic growth was recorded in confectionery (8.9%) and coffee (5.1%), driven by prices, with double-digit increases in some markets. PetCare organic growth (1.6%) was driven by Rig and reflects some market weakness, especially in the United States, but with continued market share gains in most markets. Nestlé Health Science organic growth slowed to 4.2%, reflecting mixed performance.

The group is driving organizational change after the rapid evolution of 2024 to create alignment and focus. It continues to eliminate duplication and accelerate innovation, including actions to harmonize the organization in the Europe Zone and improve the company's R&D capabilities.

The “Fuel for Growth” cost-savings program is progressing according to plan, with incremental cost savings of CHF 0.7 billion to be achieved in 2025, to date primarily driven by procurement savings.

The 2025 outlook remains unchanged, based on our assessment of the direct impact of current tariffs and our ability to adapt. Organic sales growth is expected to improve versus 2024, strengthening over the year as Nestlé continues to execute on its growth plans. Utop margin is expected to be at or above 16%, driven by growth investments. Overall, the environment remains dynamic, with high risks and uncertainties.

"Growth was broad-based across all markets and categories, with a trend of improving market shares in many businesses, especially our billion-dollar brands," said Nestlé CEO Laurent Freixe (pictured). "We have made further progress in the execution of our strategy. Our 'Fuel for Growth' cost reduction program is on track and provides the resources needed to accelerate results. In the quarter, we invested in strengthening our core businesses, achieved good consumer response with the launch of our flagship innovations, such as Nescafé Espresso Concentrate, and recorded some encouraging initial improvements in our key business units that were underperforming. We are continuing to make changes across the organization to increase alignment and focus, with initiatives to harmonize our structure in the Europe Zone and enhance our R&D capabilities."

Freixe calls the first quarter results "in line with our expectations and our 2025 outlook remains unchanged. This assessment is based on our assessment of the direct impact of the existing tariffs and our ability to adapt. The indirect impacts – on consumers and customers, as well as on currencies and raw material prices – remain unclear at this time. Overall, the situation remains dynamic, with high risks and uncertainties. Our 277,000 committed employees", concludes the Nestlé CEO, "are focused on the successful execution of our strategy: driving efficiency and investing in growth to accelerate our categories and improve market share".