Nestle has surpassed expectations in their 2025 half-year results.
This half, the company experienced organic growth of 2.9%, compared to 2.1% H1 2024 and surpassed the analysts' expectations of 2.8%.
The confectionery brands' shares also rose 4% year-on-year, but are still trailing competitors like Unilever and Danone.
While these aspects are on the rise, reported sales decreased by 1.8% in the first half of 2025, falling to 44.2 billion Swiss francs. This represents an improvement over the 2.7% decrease in sales at this time last year.
This comes as prices of products increased by an average of 2.7%, which was higher than analyst estimates.
Despite the fall in sales, Nestle CEO Laurent Freixe remains positive about the overall results.
“We are executing our strategy to accelerate performance and transform for the future,” Freixe said.
“We are accelerating our category growth and improving our market share, through better execution and increased investment, funded through a relentless pursuit of efficiency.”
Freixe said the company will be investing to accelerate further growth.
“We are addressing our 18 key underperforming business cells, and the aggregate growth gap to market has improved by a third,” Freixe said.
“We are also taking decisive measures to strengthen our business in Greater China and focus our Vitamins, Minerals and Supplements business on winning premium brands.”
Nestle has also maintained its guidance for the rest of 2025, despite macroeconomic risks and uncertainties. This includes ongoing improvements in organic growth,
“We remain confident that our actions to drive performance and transformation will deliver our medium-term growth and profit ambitions,” Freixe said.
The results come in as the company launches a strategic review of its vitamins, minerals and supplements.
At the time of writing, Nestle (SWX: NESN) shares are trading at CHF74.14, which is 4.64% lower than the previous close. The company's market cap is 191.02 billion.
