Nestlé’s first quarter 2025 results (read EFA News ) show a mixed picture, depending on the sector. Nestlé Health Science, for example, has slowed down in organic growth, with mixed results. In VMS (Vitamins, Minerals and Supplements), the company is performing well in our premium brands, with steady double-digit growth. However, overall VMS growth was held back by the cessation of some private label businesses and a weaker performance in Nature’s Bounty, whose consumer adoption was slower than expected following the resolution of supply issues last year.

In Active Nutrition, Orgain’s acceleration was partially offset by a weaker performance in Vital Proteins in a more competitive environment. In Medical Nutrition, there was strong growth in adult care products, but at the same time a decline in Zenpep following changes to the reimbursement model in the United States. To address mixed results in Nestlé Health Science, the group is prioritizing investments in its premium brands and is focusing on strengthening innovation and improving consistency of execution.

Organic growth was 4.2%, with a growth rate of 4.8% and a price decrease of 0.7%. The reported turnover increased by 5.4% to 1.6 billion Swiss francs, with a positive exchange rate impact of 1.1%. The market share remained stable in both Medical Nutrition and Vms, with losses in Active Nutrition.

Nespresso, for its part, recorded good growth, with a positive Rig, so the group also started to increase prices. North America recorded double-digit growth and further market share gains, while in Europe the rate of market share loss slowed. The quarter's performance benefited from some demand momentum ahead of the price increases, which came into effect towards the end of the quarter.

Nespresso organic growth was 5.7%, with a Rig of 2.6% and a pricing of 3.2%. Reported revenue increased by 6.1% to CHF 1.6 billion, including a -0.1% impact from currency and a 0.4% benefit from net acquisitions.

For Nestlé Waters & Premium Beverages, the new organizational structure, which provides for global self-management, came into effect on January 1, 2025. The group promoted alignment and simplification, achieving improved growth and good strategic progress. Growth was broad-based across all markets, mainly driven by Maison Perrier and Sanpellegrino.

Organic growth was 3.6%, with RG of 1.6% and pricing of 2%. Recorded sales increased by 3.9% to CHF 0.8 billion, including a positive exchange rate impact of 0.2%. Market share remains under pressure in several markets, but shows an improving trajectory.

In other segments, powdered and liquid beverages contributed the most to category growth, with organic growth of 5.2%. This growth was driven by prices, as we took steps to address input cost inflation in coffee, with double-digit increases in some markets.

Confectionery organic growth of 8.9% was price-led and led by KitKat, supported by continued growth in the chocobakery sector.

Pet Care recorded organic growth of 1.6%, reflecting a slowdown in category growth compared to the start of 2024. Nestlé continues to focus on category growth and is gaining market share in many markets, with good momentum for the premium science-based brands Purina ProPlan, Purina One and Felix.

Organic growth in water was 2.9%, with good growth from Sanpellegrino and Acqua Panna and a weaker performance from Perrier due to the continued impact of supply constraints.

Dairy products and ice cream grew 0.8%, with improved sales of ambient dairy products offset by weakness in coffee creamers.

Ready-to-eat meals and cooking aids saw nearly flat growth, as solid growth in ambient cooking products, particularly for Maggi, was more than offset by declining frozen foods in North America.