Press Release: Nestle: Full-year results 2025 and -4-

Operating segment review

Nestlé

Nestlé Waters &

Total Zone Zone Zone Health Premium Other

Group Americas AOA Europe Science Nespresso Beverages businesses

Sales

2025

(CHF m) 89,490 34,482 20,553 17,581 6,551 6,481 3,548 294

Sales

2024

(CHF m) 91,354 36,135 21,177 17,082 6,739 6,378 3,551 292

Real

internal

growth

(RIG) 0.8% 0.1% 0.8% 0.4% 3.5% 1.6% 2.6% 3.0%

Pricing 2.8% 2.8% 2.5% 3.9% - 0.3% 4.4% 2.7% 1.3%

Organic

growth 3.5% 2.8% 3.2% 4.3% 3.2% 6.0% 5.3% 4.3%

Net M&A 0.1% - 0.1% - 0.4% 1.2% - 0.4% 0.2% - 0.1% 0.0%

Foreign

exchange - 5.7% - 7.3% - 5.8% - 2.6% - 5.6% - 4.6% - 5.2% - 4.3%

Reported

sales

growth - 2.0% - 4.6% - 3.0% 2.9% - 2.8% 1.6% 0.0% 0.0%

UTOP 2025

(CHF m) 14,389 7,118 4,254 2,834 1,056 1,160 322 6

UTOP 2024

(CHF m) 15,704 7,918 4,658 3,063 943 1,278 323 -13

UTOP

margin

2025 16.1% 20.6% 20.7% 16.1% 16.1% 17.9% 9.1% 2.2%

UTOP

margin

2024 17.2% 21.9% 22.0% 17.9% 14.0% 20.0% 9.1% - 4.3%

UTOP - 110 - 130 - 130 - 180 210 bps - 210 bps Flat 650 bps

margin bps bps bps bps

YoY

Zone Americas

2025 highlights: Zone Americas delivered broad-based OG of 2.8% for the full year, achieving positive RIG despite a challenging macroeconomic environment and cautious consumer sentiment. In North America, growth was driven by RIG, and market share trends continued to improve. In Latin America, growth was driven by pricing in confectionery and coffee as well as continued momentum in out-of-home.

Q4-25 highlights: In Q4, the Zone delivered solid, balanced growth of 3.7% OG, 2.4% pricing and 1.3% RIG. North America OG was 2.5%, of which RIG was 2.4%. The sequential improvement in RIG was driven by PetCare, with particular strength in wet cat, as capacity came online after constraints earlier in the year, further supported by customer buy-in ahead of a price increase on 1 January. In Latin America, growth continued to be driven by pricing actions for coffee and confectionery.

Segment performance summary for 2025

-- Organic growth was 2.8%, with 0.1% RIG and 2.8% pricing.

-- Reported sales were down versus the prior year at CHF 34.5 billion,

driven by a negative impact of 7.3% from foreign exchange movements.

-- In North America, OG was 1.0%, with 0.8% RIG and 0.2% pricing. In Latin

America, OG was 6.7%, with -1.4% RIG and 8.0% pricing.

-- By market, growth was seen across almost all regions, led by Brazil and

the U.S.

-- Market share continues to improve, led by gains in North America,

particularly in portioned and soluble coffee, coffee enhancers and frozen

food. In Latin America, we saw market share losses in confectionery,

ambient dairy and soluble coffee.

-- UTOP margin decreased by 130 bps to 20.6%, driven by input cost inflation,

increased consumer investment, and currency and tariff headwinds that

more than offset pricing actions and efficiencies.

Key organic sales growth drivers by product category for 2025

-- Beverages (including coffee and coffee enhancers) posted high

single-digit growth with strong pricing and positive RIG. Nescafé

and coffee enhancers were key growth contributors.

-- Confectionery delivered strong high single-digit growth led by pricing in

Garoto (Brazil) and Tollhouse (U.S.). RIG was negative but improved in

the second half, helped by actions to manage price elasticities in

chocolate and by expansion in chocobakery.

-- In Nestlé Professional, growth was mid single-digit, driven by

broad-based contributions across Latin America.

-- PetCare growth was solid across the Zone. Growth was led by wet cat food

in the U.S., helped by new capacity in Q4 after supply constraints

impacted most of the year. The wet cat category continued to be positive,

while dog food was softer, impacting mainstream brands and snacks.

-- Infant Nutrition sales declined for the period, driven by on-going

challenges with Gerber and supply constraints in Nido in the first half

of the year.

-- In frozen food, growth remains negative but trends have improved further,

with market share gains in Stouffer's and DiGiorno.

Zone Asia, Oceania and Africa

2025 highlights: In Zone AOA, 3.2% OG was broad based across markets with the exception of Greater China. The strongest contribution came from the Central & West Africa Region, South Asia and the Philippines. In Greater China, sales declined in a deflationary market as we correct trade inventory and redefine our operating model. By category, growth in Zone AOA reflected strengthening performance in coffee and food in the second half of the year, together with RIG-led growth in confectionery.

Q4-25 highlights: OG was 4.6%, with 2.6% pricing and 2.0% RIG. In Zone AOA excluding Greater China, OG reached 8.6%, continuing the trend of sequential improvement seen during the first nine months; Q4 RIG of 5.5% is the strongest since 2020, even excluding the positive impact of Ramadan timing. In Greater China, Q4 OG was - 7.0%, improving compared to the previous two quarters due to the lower impact of trade inventory correction.

Segment performance summary for 2025

-- Organic growth was 3.2%, with 0.8% RIG and 2.5% pricing.

-- Reported sales were down versus the prior year at CHF 20.6 billion, due

to the negative impact of 5.8% from foreign exchange movements.

-- In Zone AOA excluding Greater China, organic growth was 6.1%, with 2.3%

RIG and 3.8% pricing. In Greater China, organic growth was - 6.4%, with

- 4.5% RIG and - 1.9% pricing.

-- Market share gains were achieved in confectionery, cocoa malt beverages

and PetCare, while soluble coffee and ambient culinary showed ongoing

improvement.

-- UTOP margin decreased by 130 basis points to 20.7%, mainly reflecting

higher cost of goods sold, driven by commodity inflation in coffee and

cocoa as well as increased investment to strengthen competitiveness in

the trade and in brand building.

Key organic sales growth drivers by product category for 2025

-- Coffee posted mid single-digit growth, driven by pricing. The largest

growth contributor was Nescafé soluble, with continued strong

momentum behind cold coffee via Nescafé Espresso Concentrate and

ready-to-drink coffee.

-- Confectionery grew at a high single-digit pace, driven by KitKat, with

overall market share gains and positive growth in most markets.

Chocobakery has been launched in several markets and is performing well.

-- Culinary delivered mid single-digit growth, fueled by solid sales

momentum and market share gains for Maggi, led by cooking aids and

noodles.

-- Nestlé Professional achieved mid single-digit growth across

geographies and categories, led by dairy and coffee.

-- Infant Nutrition and dairy growth was low single digit, led by

double-digit growth in both Milo and NAN across most geographies, partly

offset by illuma.

-- PetCare growth was negative, driven by inventory corrections in Greater

China and category softness in developed markets; other emerging markets

delivered strong double-digit growth, supported by increased strategic

investment.

Zone Europe

2025 highlights: In Zone Europe, OG was 4.3%, with RIG of 0.4%. Growth was broad based across most categories and markets, driven by coffee and confectionery, with targeted pricing to address input cost inflation, and by RIG-led growth in PetCare. Market share trends were positive across most categories. Overall, the environment remains competitive, with a strong focus on providing value for consumers, especially among retailers in some markets.

Q4-25 highlights: In Q4, OG was 4.4%, with 4.2% pricing and 0.2% RIG. OG was driven by coffee and confectionery. In coffee, OG was high single digits, moderating from Q3-25 against a more difficult comparison base. In confectionery, OG and RIG continued to strengthen, driven by reduced consumer elasticity effects. PetCare continued to perform well, with mid to high single-digit RIG across most major markets, while food remained challenging. By market, growth was solid across the majority of larger markets, with continued strengthening of OG and RIG in UK & Ireland and France, and an improvement in Germany.

Segment performance summary for 2025

-- Organic growth was 4.3%, with 0.4% RIG and 3.9% pricing.

-- Reported sales were up versus the prior year at CHF 17.6 billion,

including a negative impact of 2.6% from foreign exchange movements.

-- Growth was positive across most markets and categories, with the

strongest contributions from Türkiye, Iberia, France and South &

Eastern Europe.

-- Market share trends were positive, with gains in PetCare and improved

trends across most other categories.

-- UTOP margin decreased by 180 bps to 16.1%, as a result of a lower gross

profit margin, with operational efficiencies being reinvested in growth

through a step-up in advertising and marketing spend.

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February 19, 2026 01:00 ET (06:00 GMT)