Nestlé has reported its financial results for the first nine months of 2025, revealing a complex situation in which reported sales reached 65.869 billion Swiss francs, reflecting a year-over-year decline of 1.9%. This decrease is mainly due to an adverse exchange-rate impact of 5.4%, a factor that has weighed on the numbers despite organic growth of 3.3%, broken down into an internal real growth of 0.6% and a price increase of 2.8%.
The third quarter has been key, with organic growth that has climbed to 4.3%, along with a recovery in internal real growth to 1.5%. This is partly due to strategic investments that aim to consolidate the company under the leadership of the new chief executive, Philipp Navratil. He has outlined an action plan to accelerate growth led by RIG, reallocate capital with greater precision, and invest where higher returns are expected.
Nestlé has increased its savings program "Fuel for Growth" to 3 billion Swiss francs by 2027 and has signaled significant measures, such as a headcount reduction of approximately 16,000 positions, mostly in office functions. The company justifies this adjustment as a step 'necessary to gain speed' in the context of process automation.
As for category sales, coffee and confectionery have led growth, driven especially by price increases. The Americas, Asia-Oceania-Africa, Europe, and specific divisions such as Nespresso have contributed to organic growth, showing a mixed picture where both advances and challenges stand out, as weakness persists in China.
Nestlé's new mandate emphasizes the need for more investment in profitable areas and adjustments where they are not. The company aims for free cash flow above CHF 8 billion in 2025 and to maintain an UTOP margin at or above 16.0%. Nestlé faces macroeconomic uncertainties, especially in China, as it advances in process automation as a central pillar of its strategy to maintain profitability.
The multinational's cultural and financial approach suggests a "performance mindset" that prioritizes gaining market share and rapid divestments in unprofitable areas. This approach also entails a commitment to “respect and transparency” during the inevitable headcount reductions, as the company focuses on securing its long-term leadership through improved organic growth.
