Stock prices of Nestlé plummet by five percent, reaching a seven-year low.
Nestlé, the world's largest food conglomerate based in Vevey, has presented its half-year results for 2025. The results, while showing growth, have raised questions about the company's ability to deliver on its growth promises.
Laurent Freixe, the CEO of Nestlé, has been leading the company for nearly a year now. Despite a challenging environment of dampened consumer sentiment, Freixe has made notable progress in regaining market trust. The company reported a broad-based organic sales growth of 2.9% in H1 2025, with a slight improvement from Q1 to Q2.
Freixe emphasized the consistent execution of their strategy, focusing on accelerating category growth and improving market share through better execution and increased investment, supported by efficiency efforts. Notably, areas where Nestlé is investing for growth are expanding four times faster than the overall group. Six major innovation projects ("big bets") generated over CHF 200 million in sales in the first half.
However, total reported sales declined 1.8% to CHF 44.2 billion, attributed largely to pricing increases—10.6% in confectionery and 6% in coffee—which affected sales volume and consumer affordability. This sales dip indicates that while growth foundations are improving, near-term consumer sentiment challenges persist.
Freixe remains confident, maintaining 2025 guidance and expressing optimism about delivering on medium-term growth promises through ongoing transformation and disciplined investment. The initial market reaction appears cautiously positive, reflecting renewed investor confidence despite these headwinds.
In summary, Freixe has begun to restore market trust by delivering growth in difficult conditions with improved execution and strategic focus. Nestlé faces challenges from weakened consumer sentiment and pricing pressures, impacting total sales but not organic growth. The company is positioned to deliver on growth promises in the medium term, supported by targeted investments, efficiency gains, innovation, and corrective measures in key markets.
The outlook depends on ongoing execution and consumer market recovery, but the half-year results demonstrate credible progress under Freixe’s leadership. Cautious consumers in America and China contributed to the less-than-desirable outcome of Nestlé's half-year results. The half-year results were a significant assessment for Freixe, as it was a first major interim evaluation of his leadership.
It's important to note that the current consumer sentiment in America and China is reflected in Nestlé's half-year results. The market's trust in Nestlé remains questionable following the presentation of its half-year results. The half-year results did not satisfy investors and shareholders, and the company continues to face challenges in delivering on its growth promises due to dampened consumer sentiment.
Users may experience issues with the Nestlé website due to browser settings or ad blockers. The Nestlé website requires JavaScript for its functions. The company's website provides more detailed information about the half-year results and future plans.
- The economic and social policy of Nestlé, as demonstrated in their half-year results, involves focusing on market trust recovery, category growth acceleration, improved market share through execution and increased investing, and targeted innovation projects.
- Despite the positive organic sales growth and efforts to deliver on growth promises, the financial performance of Nestlé continues to be questionable among investors due to the dampened consumer sentiment, particularly in America and China, which have affected the company's total sales.
