MILAN – Nestlé ended 2025 with declining revenues and profitability, due to exchange rate effects, increased raw material costs and US tariffs. The global food giant headquartered in Vevey (Vaud) released today, Thursday, 19 February 2026, the results for the financial year ending 31 December 2025. The Swiss Swiss behemoth and world leader in the coffee sector – saw reported sales fall by 2% over the 12 months to CHF 89.49 billion (US115.97 billion).

Organic growth reached 3.5% and real internal growth (RIG) 0.8%. Pricing stood at 2.8%. In terms of profitability, Underlying trading operating profit (UTOP) decreased by 8.4% to 14.39 billion, and the UTOP margin stood at 16.1% compared to 17.2% previously. Net profit fell by 17% to 9.03 billion.

The figures are more or less in line with those of analysts, who expected less than 90 billion, organic growth of 3.3% and a RIG of 0.7%. According to CEO Philipp Navratil, these figures reflect “the targeted actions we have taken in a difficult external environment. Real internal growth (RIG) was positive across all Zones and global businesses. We increased our investment in marketing, delivered a UTOP margin of 16.1% and generated CHF 9.2 billion in free cash flow.

Improving organic growth, RIG and market share trends in the second half show that our actions are working. We are accelerating our strategy. We are focusing our portfolio on four businesses, led by our strongest brands, with prioritized resources and a simplified organization.

We are upgrading our marketing and innovation and increasing investment behind high-potential growth platforms, which now have an expanded scope and represent 30% of sales. We are stepping up our efficiencies and strengthening our financial position. This is underpinned by a performance culture that rewards excellence and results.

While there is more to be done, we are confident that our faster execution of a more focused strategy will deliver sustained improvement through 2026 and beyond.”

(source: Nestlé) By category, confectionery and coffee were the largest organic growth contributors, driven by high single-digit pricing

The focus in these two categories was on smart pricing action to fully address input cost increases where possible, while maintaining medium-term consumer penetration.

In coffee, elasticity effects have been limited, and RIG was slightly positive over the year. In confectionery, short-term elasticities were more pronounced, consistent with historical trends. Outside coffee and confectionery, organic growth was positive across most categories, notably with RIG-led growth in PetCare.

By geography, organic growth in developed markets was 2.3%, balanced between RIG of 1.1% and pricing of 1.2%. In emerging markets, organic growth was 5.4%, with pricing of 5.1% and RIG of 0.2%.

By channel, organic growth in retail sales was 3.4% and in out-of-home was 5.4%. E-commerce sales grew organically by 13.5%, reaching 20.5% of total Group sales.

(source: Nestlé) Powdered and Liquid Beverages was the largest category growth contributor, with 7.3% organic growth, led by pricing, as we took actions to address input cost inflation in coffee. Nescafé and Nespresso were the leading contributors of growth. RIG remained positive, with only limited elasticity observed following the price increases. Confectionery organic growth of 8.2% was driven by pricing and led by KitKat. Negative RIG reflects short-term volume softness resulting from price-driven elasticity. PetCare delivered 2.2% organic growth, helped by improved performance in the fourth quarter of the year. Growth was led by wet and dry cat, partly offset by weakness in dry dog. Market share grew globally, driven by Europe. Milk products and Ice cream posted 1.3% organic growth, led by solid performance from dairy culinary brands, Nestlé and La Lechera. Water delivered organic growth of 3.9%, led by good performance from Maison Perrier and S.Pellegrino. Nutrition and Health Science recorded organic growth of 0.6%, driven by strong performance from NAN and Orgain, partially offset by weakness in Gerber and illuma. Prepared dishes and cooking aids reported slightly negative organic growth of -0.4%, driven by category weakness in U.S. Frozen Foods and partly offset by growth in Maggi. (source: Nestlé) Coffee

In Zone Americas, beverages (including coffee and coffee enhancers) posted high single-digit growth with strong pricing and positive RIG. Nescafé and coffee enhancers were key growth contributors.

In Zone Asia, Oceania and Africa, coffee posted mid single-digit growth, driven by pricing. The largest growth contributor was Nescafé soluble, with continued strong momentum behind cold coffee via Nescafé Espresso Concentrate and ready-to-drink coffee.

In Zone Europe, coffee posted high single-digit growth, led by pricing, with RIG impacted by consumer elasticity effects. The largest growth contributor was Nescafé soluble coffee.

Nespresso

Nespresso delivered OG of 6.0%, led by pricing and supported by positive RIG. North America remained the key growth driver, with double-digit growth, strong consumer acquisition and continued market share gains, supported by increased investments. In Western Europe, market conditions remained challenging.

Q4-25 highlights: In Q4, OG was 4.2%, with -0.6% RIG and 4.8% pricing. Growth was driven by the U.S., with continued double-digit OG led by RIG, albeit slowing compared to a very strong Q3. In Europe, the environment remains competitive, with broadly flat OG reflecting some price elasticity and the negative effect of some customer order phasing.

Segment performance summary for 2025

Organic growth was 6.0%, with 1.6% RIG and 4.4% pricing. Reported sales were up versus the prior year at CHF 6.481 billion (US$8.399 billion), despite a negative foreign exchange impact of 4.6%. Market share gains in North America continued to build strong momentum. In Europe, share remained under pressure across key markets due to competitive intensity. UTOP margin declined by 210 bps to 17.9%, reflecting higher cost of goods sold in H2, driven by inflation in coffee, tariffs as well as a marked increase in marketing investment to support growth.

Key organic sales growth drivers for 2025

By geography, North America delivered strong double-digit growth, led by RIG and fueled by successful brand campaigns, celebrity collaborations as well as impactful innovations. In Europe growth was positive and led by pricing. By system, growth was driven by Vertuo. Out-of-home grew mid single-digits, led by strong hotels, restaurants and cafés (horeca) momentum and increased machine placements. Digital transformation remained a key enabler. Deployment of the Nespresso mobile app contributed to increasing basket value and purchase frequency, Starbucks direct-to-consumer received strong reception, while e-retail and marketplaces were key growth drivers of business to consumer channel.

Despite its high level of debt, Nestlé is maintaining its dividend policy. The group is proposing a 3.10 franc per share dividend for 2025, up 1.6%.

Guidance 2026 OG expected to be in the range of around 3% up to 4%, with RIG accelerating versus 2025, driven by our focused growth plans; this includes the expected impact of sales returns and stock shortages of approximately -20 bps from the infant formula recall; additional impact is uncertain and could drive OG towards the lower end of the range. UTOP margin expected to improve versus 2025, strengthening in the second half of the year. Free cash flow expected to be above CHF 9 billion. Changes to the Executive Board

With the formation of the newly integrated Nutrition business, the Globally Managed Business structure of Nestlé Health Science will be removed. Anna Mohl, CEO of Nestlé Health Science, will step down from the Executive Board on 28 February 2026 and has chosen to pursue opportunities outside Nestlé. The Board of Directors warmly thanks Anna Mohl for her leadership and significant contributions to Nestlé and wishes her every success in her future endeavors.

The Swiss group will propose former Swiss National Bank (SNB) President Thomas Jordan and P&G manager Fatima Francisco as candidates for the Board of Directors at the next Annual General Meeting on 16 April.