Vevey, February 13, 2025

Solid 2024 performance; executing on plan to accelerate growth

Laurent Freixe, Nestlé CEO commented: "In a challenging macroeconomic context and soft consumer environment, we achieved a solid performance in 2024 in line with our latest guidance. Organic growth was 2.2%, with a return to positive real internal growth of 0.8%, and both strengthened in the second half. Free cash flow improved to CHF 10.7 billion, and the Board proposes an increase in the dividend per share to CHF 3.05.

We have a clear roadmap to accelerate performance and transform for the future. Increasing investment to drive growth is central to our plan. This means delivering superior product taste and quality with unbeatable value, scaling our winning platforms and brands, accelerating the rollout of our innovation ‘big bets’ and addressing underperformers. We are creating the fuel for these growth investments through our new CHF 2.5 billion three-year cost savings program. We are making good progress and have already secured over CHF 300 million of these savings for 2025.

From 2025, we expect our actions to drive an improvement in organic sales growth, with a lower underlying trading operating profit margin in the short term as we invest for growth. While there is macroeconomic uncertainty, we have lots of opportunities ahead of us, and we have the strategy, the resources and the people and team to deliver."

¹ Profit for the year attributable to shareholders of the parent

Financial highlights

Broad-based organic growth despite soft consumer demand, with a return to positive RIG

• Organic sales growth of 2.2%, with real internal growth (RIG) of 0.8% and pricing of 1.5%.
• Growth strengthened during the year; organic growth was 2.1% in H1 and 2.3% in H2, with RIG improving from 0.1% in H1 to 1.4% in H2.
• Growth was led by coffee, confectionery and PetCare; by geography, growth was driven by emerging markets and Europe.

Margin in line with latest guidance, reflecting input cost increases and growth investments

• Underlying trading operating profit (UTOP) margin of 17.2%, down 10 basis points (bps) on a reported basis and flat in constant currency, with improved gross profit margin and a 40 bps increase in marketing investment.
• Net profit down 2.9% to CHF 10.9 billion, basic EPS down 1.0% to CHF 4.19, with declines due to adverse foreign exchange movements.
• Underlying EPS CHF 4.77, up 2.5% in constant currency, driven by modest UTOP growth and lower share count, partly offset by increased financing costs.

Strong free cash flow generation, continued dividend per share growth

• Free cash flow improved to CHF 10.7 billion; proposed dividend per share (DPS) increased to CHF 3.05.

Operational and strategic progress and outlook

Organizational changes implemented to increase simplicity and strengthen accountability

• Reduction in geographic reporting segments from 5 Zones to 3 Zones; Nestlé Waters and premium beverages now a standalone global business.
• Renewed performance management framework and incentive plans to increase alignment.

CHF 2.5 billion cost savings program launched, with first results already achieved

• Fuel for Growth cost savings in 2025 expected to be CHF 0.7 billion, reaching CHF 2.5 billion by the end of 2027.
• Over CHF 300 million savings for 2025 already secured from actions taken since Q4 2024.

Plan to drive growth through increased investment and better execution

• As laid out at the recent Capital Markets Day, clear focus on accelerating category growth and improving market share performance in 2025 and over the medium term.
• Action plans now developed for 18 key underperforming business cells, which represent 21% of sales; execution is progressing, with early signs of improvement in some cells.
• Growth investments stepping up, including an increase in advertising and marketing to 9% of sales by the end of 2025.
• Innovation now focused to drive greater impact, with six ‘big bets’ for 2025 benefiting from accelerated global rollout plans.

2025 outlook unchanged

• Guidance in line with previous outlook, as accelerated delivery of cost efficiencies offsets recent increases in key commodity prices.
• Organic sales growth expected to improve compared to 2024, strengthening through the year as we continue to deliver on our growth plans.
• UTOP margin expected to be at or above 16.0% as we invest for growth.
• Guidance assumes no significant change in key macroeconomic variables.

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PDF press releases:

• English (pdf)
• Français (pdf)
• Deutsch (pdf)

Other reports published today:

• Financial Statement 2024 (pdf)
• Annual Review 2024 (pdf)
• Corporate Governance Report 2024 (pdf)
• Non-Financial Statement 2024 (pdf)
• Creating Shared Value at Nestlé 2024 (pdf)
• Other language versions available in Publications

Contacts:

Investors:
David Hancock Tel.: +41 21 924 3509
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Media:
Christoph Meier  Tel.: +41 21 924 2200
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