Nestle S.A. released its 2025 financial results on February 19, 2026. The report indicates that the Group achieved an organic growth rate of 3.5% for the year. The underlying trading operating profit margin stood at 16.1%, net profit reached 9 billion Swiss francs, and free cash flow generation was strong at 9.2 billion Swiss francs.

Targeted growth investments by the Group effectively accelerated the Real Internal Growth rate from 0.2% in the first half of 2025 to 1.4% in the second half, with improvements seen across all product categories and geographic zones. The Group's market share in terms of volume has now stabilized, and growth momentum continued into the fourth quarter of 2025, which recorded an organic growth rate of 4.0%. Market share growth for the 'Billionaire Brand Club' turned positive, marking the best performance in over a decade. In the Greater China region, the impact of channel inventory adjustments lessened, leading to an improved organic growth rate in the fourth quarter compared to the previous two quarters.

Philipp Navratil, CEO of Nestle S.A., stated, "Our 2025 performance is encouraging, fully demonstrating that the series of targeted measures we have taken have yielded results in a challenging external environment. All geographic zones and global businesses achieved positive Real Internal Growth. The continuous improvement in organic growth, Real Internal Growth, and market share performance in the second half confirms that our actions are proving effective."

"We are accelerating our strategic transformation, focusing on four core business portfolios, led by our strongest brands, optimizing resource allocation, and simplifying our organizational structure. We are continuously enhancing our marketing and innovation capabilities and increasing investment in high-potential growth platforms, which now account for 30% of total sales. At the same time, we are constantly improving efficiency, strengthening our financial foundation, supported by a performance culture focused on excellence and results. While there is still much work to be done, we are confident that by executing a more focused strategy more rapidly, we will drive sustained and steady business improvement in 2026 and beyond," Navratil further emphasized.

Regarding the full-year 2026 outlook, the report indicates that the Group expects organic growth in the range of approximately 3% to 4%. Driven by more focused growth plans, Real Internal Growth is anticipated to accelerate compared to 2025. This outlook includes an estimated negative impact of approximately -20 basis points related to returns and supply shortages from the infant formula product recall. The underlying trading operating profit margin is expected to improve compared to 2025, with further strengthening in the second half.

The report also detailed the Group's ongoing 'Accelerated Growth Strategy'. Actions taken in 2025 have yielded significant results, with business growth and market share improving further in the second half. Building on this positive momentum, the Accelerated Growth Strategy will focus on five key initiatives.

First, focusing on four core businesses and optimizing the business portfolio. The Group is concentrating on three global growth engines: Coffee, PetCare, and Nestlé Health Science, which together account for 70% of Group sales, while maintaining leadership in the Food and Snacks categories in certain regional markets. The Nutrition business has been integrated with Nestlé Health Science into a single business unit to strengthen category leadership, enhance synergies, and advance organizational simplification. Increased focus is being placed on the Food and Snacks categories, with ongoing brand portfolio optimization, including advanced negotiations with Froneri regarding the sale of the remaining ice cream business.

Second, prioritizing business growth driven by Real Internal Growth. The Group has expanded its high-potential growth platforms to represent 30% of Group sales, achieving high single-digit growth. These platforms will receive an additional 600 million Swiss francs in investment support in 2026. The Group is also upgrading and further strengthening the linkage between consumer insights, innovation, and marketing capabilities.

Third, accelerating business transformation. The Group is simplifying its organizational structure and reinforcing local accountability to enhance decision-making efficiency and responsiveness. It is also accelerating cost optimization initiatives, having already achieved its target for improving white-collar operational efficiency ahead of schedule, realizing 20% of its 1 billion Swiss franc annual savings goal.

Fourth, driving free cash flow growth and reducing net debt. Building on improvements made in the second half of 2025, the Group is further reducing working capital and optimizing capital expenditure. It is conducting regular reviews of smaller, non-core assets to drive business focus and unlock potential value.

Fifth, fostering a high-performance culture. The Group is cultivating a corporate culture that recognizes and rewards success while encouraging teams to embrace a sense of 'business ownership'. There is a firm stance against underperformance. Incentive structures are being adjusted to drive Real Internal Growth and reward the effective execution of strategic priorities.

Additionally, the report provided an update on the infant formula recall initiated early in 2026. The Group has completed the recall process and is now focused on replenishing inventory. All infant formula production plants have resumed operations, and the raw material supplier has been replaced. Comprehensive testing is implemented before, during, and after production. The Group adheres to stringent quality standards and safety protocols that exceed Good Manufacturing Practices and current regulations, including risk management for cereulide toxin from Bacillus cereus in infant formula. The recall covered all batches of infant formula powder where the potential cereulide content was ≥0.2 nanograms per gram. This standard is stricter than the 0.43 nanograms per gram recall action threshold recently set and being implemented across the European Union.