Nestle S.a. · SIX:NESN
Nestle — H1 2025 Earnings Presentation
16 slides from Nestle's earnings presentation, September 2025
Slide 1: Roadshow Presentation
Roadshow Presentation August-September 2025
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.
Slide 3: Key messages
Key messages i “ia SyaNed 3 Nestlé Good food, Good life
Slide 4: Strategic context: Our ambition and strategy for Nestlé
Strategic context Our ambition and strategy for Nestlé Our ambition for a winning Nestlé Strategy to deliver the transformation • Positioned to win • Renewed focus on organic growth • Capitalizing on positioning in advantaged categories, • Prioritising organic value creation vs inorganic which are g
Slide 5: Transformation journey
Transformation journey Fully implementing the turnaround is expected to take time 2024 2025 2026 Medium term Organic growth Strong pricing, Improving RIG OG 4%+, (OG) 2.2% improving OG and market share RIG-led UTOP margin UTOP margin at UTOP margin UTOP margin 17.2% or above 16.0% recovering 17%+ Ac
Slide 6: Key H1 discussion topics (1)
Key H1 discussion topics (1) Our messages on the 4 main areas of investor focus 1. RIG and organic growth (OG) 2. UTOP margin Discussion topics Discussion topics • Negative headline RIG of -0.4% in Q2 • H2 margin down “significantly”; marketing spend cut? • Prospect of improvement in H2? • Outlook f
Slide 7: Key H1 discussion topics (2)
Key H1 discussion topics (2) Our messages on the 4 main areas of investor focus 3. Cash flow 4. Greater China and VMS Discussion topics Discussion topics • FCF weak in H1; FY outlook and FCF dividend cover • Size and timing of Greater China issues • Leverage trajectory • Confidence in VMS plans Our
Slide 8: Supporting materials
Supporting materials SPADE Nestlé Good food, Good life
Slide 9: H1-2025 highlights
H1-2025 highlights Consistent execution, improving growth fundamentals What we have done Financial highlights, H1-2025 Navigating the external environment Organic growth (OG) UTOP margin • Robust pricing to protect structural profitability (given input costs in coffee and confectionery) Improving th
Slide 10: 1. OG and RIG (1)
1. OG and RIG (1) Good growth across the majority of business; China and NHSc weaker Group Group excl. G. China and NHSc* Greater China and NHSc** * 88% of sales in H1-2025 ** 12% of sales in H1-2025 • Headline Group figures show steady • In the majority of the business, OG has • The recent RIG slow
Slide 11: 1. OG and RIG (2)
1. OG and RIG (2) Focus on execution is starting to bring results Improving growth across most Zones* Improving growth across most categories** • North America: resilient performance in soft macro, almost all • Powdered & Liquid Beverages: pricing-led but with positive RIG categories improving, stro
Slide 12: 1. OG and RIG (3)
1. OG and RIG (3) Across our Zones, OG is now improving in most categories North America: H1 0.3% OG, stable or improving Zone Europe : H1 3.5% OG; pricing led, with RIG OG across all major categories turning positive in Q2 even as pricing increased Latin America : H1 5.5% OG, pricing-led with AOA e
Slide 13: 2. UTOP margin (1)
2. UTOP margin (1) Margin guidance reiterated despite headwinds & increased investment FY-2025 UTOP margin at or above 16.0% • H1 down YoY and sequentially, but better than UTOP margin expectations • Accelerated pricing, tariff mitigations, some phasing FY-25 at or • FY guidance held despite headwin
Slide 14: 2. UTOP margin (2)
2. UTOP margin (2) PetCare and Food categories show we can recover gross margin 14
Slide 15: 3. Cash flow
3. Cash flow Delivering on cash flow is a top priority Free cash flow H1-2024 to H1-2025 (CHF billion) • Cash flow impacted by 2025 margin investment • Adjusted EBITDA was lower as we invest for growth and navigate increased commodity costs in coffee and cocoa 4.0 • UTOP margin is expected to improv
Slide 16: Guidance
Guidance 2025 guidance maintained despite headwinds Reported Guidance FY-2024 H1-2025 2025 Medium-term Improving 4%+ Organic 2.2% 2.9% compared in normal sales growth to 2024 market conditions Underlying At or above trading operating 17.2% 16.5% 16% as we 17.0%+ profit margin invest for growth 16