Press Release: Nestle: Half-year results 2026: -3-

In Zone Americas, growth was broad based, with positive OG across all markets and all categories. Performance was supported by continued execution focus and targeted investments. Our US business remains resilient despite low consumer confidence weighing on spending for some consumers. In Latin America, robust RIG-led growth highlights the strength of our brands and execution.

-- OG was 2.8%, with RIG of 0.8% and pricing of 1.9%.

-- North America OG was 1.5%, with -0.6% RIG and 2.1% pricing. In Latin

America, OG was 5.8%, with 4.2% RIG and 1.5% pricing.

-- For the Zone, Mexico and Brazil were the main drivers of RIG, which

accelerated in both markets as pricing eased. In the US, OG momentum was

maintained, driven by pricing in Coffee and RIG in Petcare and

Nutrition.

-- Market share continued to improve in Petcare and remained largely stable

across Coffee and Food & Snacks, with some share loss in Nutrition.

Q2-26 key growth drivers by product category

-- Coffee (20% of Zone sales): OG was mid-single digit, driven by pricing.

In the US, OG slowed as increased pricing was more than offset by softer

RIG. Outside the US, RIG strengthened further as pricing eased. Growth

was strong in the out-of-home channel. For the Zone, OG continued to be

driven by double-digit growth in Nescafé across all major markets,

reflecting the strength of the brand and the consumer value proposition.

Starbucks delivered price-led growth, while Coffee mate declined.

-- Petcare (32% of Zone sales): OG was low single digit, with a balanced

contribution from RIG and pricing. Growth was held back by some retailer

inventory reduction in the US, but sell-out trends continued to

strengthen in both cat and dog, reflecting improving category dynamics

and our better execution. Performance was further supported by strong

growth in Latin America.

-- Nutrition (20% of Zone sales): OG was low single digit, driven by RIG.

Growth was led by an acceleration in adult nutrition, driven by Nature's

Bounty, Vital Proteins and Pure Encapsulations, as well as another strong

quarter in medical nutrition. Performance in Gerber continues to be

challenged.

-- Food & Snacks (28% of Zone sales): OG was low single digit, driven by

pricing. RIG slowed slightly in the quarter driven by seasonal phasing in

confectionery. Performance in frozen foods in the US continues to reflect

current category softness, but the growth trend was stable sequentially.

Zone Asia, Oceania and Africa

H1-26 operating performance

-- OG was 4.3%, with RIG of 2.8% and pricing of 1.5%.

-- Reported sales were CHF 10.4 billion, including a negative impact of 7.9%

from foreign exchange movements.

-- UTOP margin was flat year-on-year at 21.4%. Strong progress on structural

cost savings was offset by increased investment to support commercial

execution and brand building, as well as the impact of the infant formula

recall.

Q2-26 sales performance

In Zone AOA, Q2-26 growth was broad based across all categories and most markets. Strong execution is driving positive momentum in our business, despite the mixed consumer environment in different markets. In Greater China, our business is now stable, the planned trade inventory reduction is complete, and we are making good progress in our transition to a demand-led growth model.

-- For total Zone AOA, OG strengthened to 6.5%, with RIG accelerating to

4.8% and pricing of 1.7%.

-- In Zone AOA excluding Greater China, OG was 7.7%, with 6.0% RIG and 1.8%

pricing -- all improving in Q2 compared to Q1.

-- Greater China delivered 2.0% OG, comprising 0.5% RIG and 1.5% pricing.

Growth was positively impacted by lower trade inventory reductions in

Q2-26 compared to last year. Growth continues to be negative in the

categories in which we operate.

-- In Zone AOA, growth was positive across most geographic markets,

reflecting strong execution and market momentum. Highlights included

double digit RIG-led growth in India, the Central & West Africa Region

and Indonesia.

-- Market share gains continued in Food & Snacks and Petcare, with ongoing

improvement in Coffee; Nutrition market share remained under pressure.

Q2-26 key growth drivers by product category

-- Coffee (26% of Zone sales): OG was high single digit, led by RIG with

moderating pricing carryover from increases taken last year. Growth was

led by Nescafé, both in soluble coffee and RTD, with positive

momentum across most markets.

-- Petcare (4% of Zone sales): OG accelerated to high single digit, driven

by robust RIG across developed and emerging markets. Wet cat was the key

driver, supported by launches of innovations in key markets.

-- Nutrition (32% of Zone sales): OG returned to low single digit growth,

reflecting strong growth in adult nutrition. Infant formula brands

affected by the Q1 recall showed a good recovery and Lactogen grew

strongly.

-- Food & Snacks (38% of Zone sales): OG was double digit, driven by RIG and

reflecting the sustained positive trend over the past two years. Growth

was led by confectionery, supported by continued momentum for KitKat.

Maggi contributed strongly through savory cooking solutions and noodles,

supported by new launches and focused brand investments. Milo continues

to do well across geographies.

Zone Europe

H1-26 operating performance

-- OG was 2.7%, with RIG of 0.5% and pricing of 2.2%.

-- Reported sales were CHF 9.0 billion, with a negative impact of 4.0% from

foreign exchange movements.

-- UTOP margin decreased year-on-year to 16.4%. Profitability was impacted

by higher input costs, increased marketing investment and the impact of

the infant formula recall. This was partly mitigated by continued cost

discipline and savings initiatives.

Q2-26 sales performance

Performance in Zone Europe was solid, underpinned by disciplined execution in a competitive environment. Growth continued to be driven by strength in Coffee and Petcare. RIG was impacted by temporary delistings with certain retailers, mitigated by capturing other growth opportunities. As expected, pricing moderated as we lapped increases taken last year.

-- OG was 1.5%, with flat RIG and pricing of 1.5%.

-- By market, trends were mixed. Türkiye, UK & Ireland and South &

Eastern Europe were the largest contributors to growth, while other

larger markets were impacted by declines in infant nutrition and some

temporary delistings.

-- Market share strengthened further in Petcare, and trends continued to

improve in Coffee and Food & Snacks. In Nutrition, market share remains

impacted by the infant formula recall.

Q2-26 key growth drivers by product category

-- Coffee (29% of Zone sales): OG was high single digit, driven by RIG.

Pricing continued to moderate, as we lapped increases taken during H1-25,

while RIG accelerated. Growth was primarily driven by Nescafé

soluble coffee, with portion coffee and RTD coffee further supporting

growth.

-- Petcare (30% of Zone sales): Petcare continued to deliver mid

single-digit OG, driven by RIG, sustaining the positive trajectory of the

last two years. Growth was broad-based across markets and brands,

including Pro Plan, ONE and Felix, driven by premium wet cat and strong

performance in the e-commerce channel.

-- Nutrition (14% of Zone sales): OG declined low single digit due to the

infant formula recall across Europe. Outside infant nutrition, growth was

good, driven by medical nutrition and strong RIG in adult nutrition, led

by Solgar and Pure Encapsulations.

-- Food & Snacks (27% of Zone sales): OG declined mid single digit, driven

by RIG. Both food and confectionery saw lower sales, reflecting a

challenging environment across several markets. Within confectionery,

KitKat continued to deliver positive growth.

Nespresso

H1-26 operating performance

-- OG was 4.3%, with RIG of 1.7% and pricing of 2.6%.

-- Reported sales were CHF 3.1 billion, impacted by a negative effect of

5.1% from foreign exchange movements.

-- UTOP margin decreased by 120 bps to 20.7%, reflecting higher input costs

driven by inflation in coffee and tariffs, as well as an increase in

marketing investment to support growth.

Q2-26 sales performance

Nespresso delivered solid OG in the quarter in the context of moderating pricing. We continue to focus on growing our active base with targeted consumer acquisition activities, particularly in North America. In Q2, this trend was partially offset by softer consumption in some markets.

-- OG was 3.4%, with RIG of 1.5%; pricing was 2.0%, easing compared to the

previous quarter as we cycle prior year increases.

-- By geography, performance was again led by high single-digit OG in North

America, where growth moderated in the US, but strengthened in Canada.

Growth was supported by AOA, while OG in Europe was flat.

-- By system, growth continues to be driven by Vertuo, supported by the

rollout of the new Vertuo Up machine, now available in almost 50 markets.

-- By channel, out-of-home OG was high single digit, growing across all

segments.

-- Market share gains continued in North America, while Europe remains

pressured across key markets due to ongoing competitive intensity.

-- Consumer engagement remained strong, supported by the early success of

summer limited editions such as Yuzu Vanilla Over Ice. The launches

resonated strongly with consumers, driving robust accessories growth and

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July 23, 2026 01:00 ET (05:00 GMT)