Press Release: Nestle: Three-month sales 2025: -3-

Key organic sales growth drivers

-- By geography, North America posted low single-digit growth, Europe

delivered mid single-digit growth, and other regions saw high

single-digit growth.

-- VMS recorded mid single-digit growth, with strong sales momentum for

premium brands, particularly Garden of Life, Pure Encapsulations and

Solgar. This was partially offset by slower growth in Nature's Bounty and

by brand portfolio management actions, as we discontinued activities with

some private label clients.

-- Active Nutrition posted low single-digit growth, with increased momentum

for Orgain partially offset by a weaker performance from Vital Proteins.

-- Medical Nutrition delivered mid single-digit growth, driven by strong

sales momentum for adult medical care products, particularly Resource and

Compleat. Sales for Zenpep were flat, with negative pricing and some

impact on RIG in the quarter, driven by the effect of changes in drug

reimbursement as part of the Inflation Reduction Act in the US.

Nespresso

In Nespresso, we delivered good growth, with positive RIG, while we also began to increase pricing. North America delivered double-digit growth and further market share gains, and in Europe, the rate of market share losses slowed. Performance in the quarter benefited from some pull forward of demand ahead of price increases, which took effect towards the end of the quarter.

Segment performance summary

-- Organic growth was 5.7%, with 2.6% RIG and 3.2% pricing.

-- Reported sales increased by 6.1% to CHF 1.6 billion, including a -0.1%

impact from foreign currency and a 0.4% benefit from net acquisitions.

-- Market share in North America continued to increase, while we slowed the

share losses in Europe.

Key organic sales growth drivers

-- By geography, sales in North America grew at a double-digit rate, while

Europe posted positive growth.

-- By system, growth was driven by the Vertuo system, with strong sales

momentum across all geographies. Sales for out-of-home channels grew at a

high single-digit rate, backed by the Momento system.

Nestlé Waters & Premium Beverages

In Nestlé Waters & Premium Beverages, the new organizational structure as a standalone globally managed business took effect on 1 January 2025. We moved swiftly to drive alignment and simplification, and delivered improved growth and good strategic progress. Growth was broad-based across markets, and was mainly driven by Maison Perrier and Sanpellegrino. We are progressing with the strategic evaluation of the business, including exploring partnership opportunities.

Segment performance summary

-- Organic growth was 3.6%, with 1.6% RIG and 2.0% pricing.

-- Reported sales increased by 3.9% to CHF 0.8 billion, including a positive

impact from foreign exchange of 0.2%.

-- Market share remains under pressure in a number of markets but with an

improving trajectory.

Key organic sales growth drivers

-- By geography, Southern Europe and AOA posted mid single-digit growth,

while the Americas and Northern Europe delivered low single-digit growth.

-- Growth was strong in premium beverages, supported by the roll-out of new

products under the Maison Perrier and Sanpellegrino beverages platforms.

-- Within waters, we saw good growth from S.Pellegrino and Acqua Panna, with

weaker performance at Perrier due to the continued impact of supply

constraints.

3. Category performance

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confectionery PetCare

Sales

3M-2025

(CHF m) 22 601 6 124 722 2 542 3 657 2 660 2 192 4 704

Sales

3M-2024

(CHF

m)* 22 092 5 847 701 2 605 3 680 2 626 2 043 4 590

Real

internal

growth

(RIG) 0.7% 0.5% 0.4% 0.7% 0.2% 0.3% - 1.1% 2.5%

Pricing 2.1% 4.7% 2.5% 0.1% 0.2% - 0.4% 10.1% - 0.9%

Organic

growth 2.8% 5.2% 2.9% 0.8% 0.4% - 0.1% 8.9% 1.6%

* The new management organization as of January 1, 2025 had no impact on the above table.

Powdered and liquid beverages was the largest category growth contributor, with 5.2% organic growth. This was pricing-led, as we took pricing actions to address input cost inflation in coffee, with double-digit increases in some markets.

Confectionery organic growth of 8.9% was pricing-driven and led by KitKat, supported by continued growth in chocobakery.

PetCare delivered 1.6% organic growth, reflecting a slowdown in category growth compared to early 2024. We continue to focus on driving category growth, and we are gaining share in many markets, with good momentum for science-based premium brands Purina ProPlan, Purina ONE and Felix.

Water organic growth was 2.9%, with good growth from S.Pellegrino and Acqua Panna, and weaker performance from Perrier due to the continued impact of supply constraints.

Milk products and Ice cream posted 0.8% growth, with improved sales momentum for ambient dairy offset by weakness in coffee creamers.

Nutrition and Health Science delivered positive organic growth. Within this, Nestlé Health Science delivered mid single-digit growth. Infant Nutrition posted negative growth as continued momentum for NAN was more than offset by softer sales in Gerber and Nido.

Prepared dishes and cooking aids reported close to flat growth, as solid growth in ambient culinary products, particularly for Maggi, was more than offset by a decline in frozen food in North America.

Other developments

Organization

After moving rapidly in 2024 to strengthen alignment and focus within the organization, we have been advancing the organizational changes with further simplifications to support effective execution. With a continued focus on eliminating duplication and accelerating innovation, we have begun to take steps to harmonize organizational structures in Zone Europe and enhance our capabilities in R&D.

Acquisition of minority interests and JVs

During the first quarter, we increased our ownership in two companies as follow-ons from earlier acquisitions. In China, we acquired all the outstanding minority interests of confectionery company Hsu Fu Chi, and in Nestlé Health Science we further increased our majority stake in Orgain, a leader in plant-based nutrition, where we had an option as part of the original acquisition structure. In South Korea, from 1 April 2025 we have taken control of our Purina business from the existing JV structure and integrated it into Nestlé South Korea.

(END) Dow Jones Newswires

April 24, 2025 01:00 ET (05:00 GMT)