Nestlé posts “broad-based” first-quarter growth driven by confectionery and coffee sales
Nestlé has recorded organic sales growth of 2.8% in the first quarter of 2025, with confectionery and coffee driving maximum progress. The guidance for the year is unchanged, even as the situation remains dynamic, as tariffs imposed by US President Donald Trump increase financial risks and uncertainty.
“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,” says Laurent Freixe, Nestlé CEO.
The Swiss multinational posted real internal growth (RIG) of 0.7% as pricing actions were taken to address rising input costs due to inflation in the coffee and cocoa categories. The company says the RIG reflects the short-term impacts of consumers and customers negotiating price increases.
According to reports, analysts had estimated an average organic sales growth of 2.5%.
While coffee and confectionery witnessed double-digit growth in some markets, pet care grew by 1.6%, reflecting some buyers exiting the US market. Additionally, Nestlé Health Science’s organic growth dipped to 4.2%, showing mixed performance.
“In an environment of heightened macroeconomic and consumer uncertainty, Nestlé delivered organic sales growth of 2.8%. Growth was broad-based across markets and categories, with improving market share trends across many businesses, particularly our billionaire brands,” says Freixe.
“Big bets” on track
In terms of strategic progress, Nestlé says its roll-out of innovation “big bets” is on track. Consumers have responded favorably to Nescafé Espresso Concentrate, gourmet pyramid-shaped cat food, and recent launches of choco bakery across Latin America, Asia, Oceania, and Africa.
“Our ‘Fuel for Growth’ cost savings program is on track, providing the resources to help accelerate performance. In the quarter, we invested in strengthening our core business, achieved good consumer traction, and saw some encouraging early improvements in our largest underperforming business cells,” says Freixe.
The program is expected to deliver CHF700 million (US$847 million) this year, primarily driven by procurement savings.
The F&B giant will continue making organizational changes to enhance R&D and “harmonize” company structures in Europe.
Nestlé expects its organic sales growth to improve compared to 2024, with an estimated profit rate of 16% for 2025.
