Global earnings: Nestle Q1 organic revenue rises 2.8% YoY, surpassing estimated 2.57%
By Aditya Bhagchandani Published on April 24, 2025, 10:46 IST
Nestlé has kicked off 2025 with a resilient performance despite macroeconomic and consumer headwinds, reporting organic sales growth of 2.8% year-on-year in the first quarter, ahead of analyst expectations pegged at 2.57%. The company posted a Real Internal Growth (RIG) of 0.7% and pricing growth of 2.1%, signaling continued traction in both volume and value amid inflation and shifting consumer behavior.
CEO Laurent Freixe commented,
'In an environment of heightened macroeconomic and consumer uncertainty, Nestlé delivered organic growth of 2.8%, with broad-based performance across markets and categories and improving share trends, especially in our billionaire brands.' Q1 2025 financial performance: Highlights
Growth was broad-based, with Zone AOA (Asia, Oceania, and Africa) delivering 3.1% organic growth, and Nestlé Waters & Premium Beverages growing by 3.6%. The highest growth rate was seen in the 'Other Businesses' division at 6.4%. Notably, confectionery and coffee categories led organic growth with 8.9% and 5.1%, respectively, powered largely by price hikes to offset input cost pressures. Segment performance snapshot Nestlé Health Science reported 4.2% organic growth but experienced mixed performance across geographies.
Nespresso rose 5.7% organically, showing signs of rebound.
PetCare, despite softness in the U.S. market, grew 1.6% and continued gaining market share in several countries. Strategic and operational update
Nestlé is actively advancing its 'Fuel for Growth' program, targeting CHF 0.7 billion in incremental cost savings by 2025. So far, savings have primarily been achieved through procurement efficiencies.
Key strategic initiatives included: Big bet innovations : Successful roll-outs of Nescafé Espresso Concentrate , pyramid-shaped gourmet cat food, and new Chocobakery products across Latin America and AOA.
Improved business cells : 18 underperforming segments are being actively restructured, showing early signs of turnaround.
Organizational simplification: Especially in Zone Europe, where Nestlé is harmonizing its structure to boost efficiency and innovation pace.
Freixe added,
'We are continuing to make changes throughout the organization to increase alignment and focus, and strengthen our R&D capabilities.' 2025 guidance remains intact
Despite global uncertainties and evolving tariff dynamics, Nestlé has reaffirmed its full-year 2025 guidance: Organic sales growth is expected to improve vs 2024 and accelerate through the year .
UTOP margin is projected at or above 16%, reflecting continued investments in growth.
Nestlé remains cautious but confident in navigating a dynamic environment shaped by tariffs, commodity volatility, and FX pressure, while reinforcing its long-term goal of value-driven growth and market leadership. FAQs
What drove Nestlé's Q1 2025 revenue beat?
Pricing actions in coffee and cocoa, along with a moderate rebound in volume growth and innovation-led product launches.
Which categories posted the strongest growth?
Confectionery (+8.9%) and Coffee (+5.1%), primarily driven by pricing.
What is Nestlé's 2025 margin guidance?
UTOP margin is expected to be at or above 16%, unchanged from prior guidance.
What is the outlook for the rest of the year?
Organic growth is projected to accelerate in the second half, supported by innovation, cost savings, and operational restructuring.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Markets are subject to risk. Please consult a professional financial advisor before making investment decisions. Business Upturn and its authors are not liable for any losses arising from the use of this information.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
8 hours ago
- Business Upturn
Gold slips over 1% as US jobs data beats expectations, labor market shows signs of cooling
By Aditya Bhagchandani Published on June 7, 2025, 00:15 IST Gold prices fell more than 1% on Friday after the release of stronger-than-expected U.S. nonfarm payroll data for May, prompting investors to reassess the Federal Reserve's potential rate trajectory. The U.S. economy added 139,000 jobs in May, surpassing analyst expectations of around 120,000, although the figure marked a slight decline from the revised 147,000 jobs reported in April. At 2:29 am ET, spot gold was down 1.10% at $3,315.94 per ounce. In contrast, other precious metals gained: silver rose 0.85% to $35.96, platinum advanced 2.13% to $1,164.23, and palladium surged 4.09% to $1,033.34 per ounce. The unemployment rate held steady at 4.2%, remaining near historic lows, but the broader labor data suggested signs of a gradual economic slowdown. The employment-population ratio slipped to 59.7%, the lowest level since the pandemic, while the alternative U-6 unemployment measure rose to 4.5%, its highest since COVID-era lows. Notably, the federal government lost 22,000 jobs in May, contributing to a total decline of 59,000 federal roles since January. The cuts are linked to Trump administration reforms and Elon Musk's Department of Government Efficiency initiative. Despite these mixed signals, President Donald Trump took to Truth Social, writing: 'AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!' Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
8 hours ago
- Business Upturn
US-China trade deal talks scheduled for June 9 in London: Trump
By Aditya Bhagchandani Published on June 7, 2025, 00:12 IST In a significant development toward resolving ongoing trade tensions, United States President Donald Trump announced that a high-level U.S. delegation will meet with Chinese representatives in London on June 9, 2025, to discuss a potential trade agreement. 'I am pleased to announce that Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer, will be meeting in London on Monday, June 9, 2025, with Representatives of China, with reference to the Trade Deal,' Trump stated. 'The meeting should go very well.' This announcement follows a recent call between President Trump and Chinese President Xi Jinping, where the two leaders discussed key issues including trade and critical mineral supplies. While China warned the U.S. against further aggressive trade moves and actions related to Taiwan, Trump described the dialogue as 'very positive' and confirmed that lower-level negotiations would continue. Trump also made headlines on Friday by sharing plans to construct a new ballroom at the White House, emphasizing his personal experience in building projects. 'These are the 'fun' projects I do while thinking about the world economy, the United States, China, Russia, and lots of other countries,' he remarked. The meeting on June 9 comes amid renewed friction over rare earth minerals and supply chain vulnerabilities, which have become flashpoints in the U.S.-China trade standoff. More updates on the outcome of the London meeting are expected in the coming days. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
9 hours ago
- Business Upturn
JSW Energy completes Rs 302 crore stake sale in Beempow Energy, exits subsidiary
By Aditya Bhagchandani Published on June 6, 2025, 21:44 IST JSW Energy has officially exited its step-down subsidiary Beempow Energy Private Limited following the completion of a 100% stake sale by O2 Power SG Pte. Ltd. The transaction, valued at Rs 302.66 crore, was completed on June 6, 2025, according to a stock exchange filing. JSW Neo Energy Ltd, a wholly owned subsidiary of JSW Energy, had previously acquired the O2 Power entities. Before this acquisition, 49% of Beempow's shares had already been transferred to EPIC Green Urja Private Limited and Infrastructure Yield Trust schemes. The remaining 51% was transferred as per the original Share Purchase Agreement dated March 14, 2024, and its amendment in September 2024. Beempow Energy had no revenue contribution in FY25, as confirmed by the company in the filing. The acquirers—EPIC Green Urja and SEBI-registered Infrastructure Yield Plus funds—do not belong to JSW's promoter group. The sale does not fall under related party transactions and is outside any scheme of arrangement. This move marks another step in JSW Energy's ongoing business streamlining and portfolio optimization strategy. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
