Nestlé sales rise under new leadership

Nestlé reported better-than-expected sales growth and volumes, and maintained its 2025 outlook, as results were released following the appointment of Philipp Navratil as CEO. The quarter showed stronger organic sales driven by pricing actions and an emphasis on higher‑margin categories, notably coffee, confectionery, pet care and health‑science products. Management said targeted marketing, product innovation and demand strength in the United States and select emerging markets helped lift volumes, while pricing measures offset inflationary input costs without significantly denting consumer demand.

The company highlighted margin improvements from a mix of higher selling prices, sourcing and manufacturing efficiencies, and portfolio optimization. Nestlé reiterated plans to accelerate divestments of non‑core assets, increase investment in R&D and digital channels, and maintain disciplined capital allocation through share buybacks and a steady dividend policy—moves management framed as supporting both near‑term profitability and longer‑term transformation.

The quarter is being read as early validation of Navratil’s priorities—premiumization, margin expansion and portfolio focus—but analysts warned that sustaining growth will hinge on preserving volumes amid uneven global consumer spending. Currency swings and commodity price volatility were flagged as ongoing risks that could affect future performance.

The results arrive amid notable leadership upheaval: Navratil replaced Laurent Freixe, who was fired in September over an undisclosed relationship with a direct report, and the company has seen rapid changes at the board level, including the early exit of former chairman Paul Bulcke and the appointment of Pablo Isla as his successor. Management also announced a major cost‑reduction plan that will cut around 16,000 jobs as part of broader efforts to boost sales volumes and streamline operations.

Investor reaction was cautiously optimistic: the stock saw modest gains on the improved top‑line momentum, though some market participants said they would wait for additional quarters of consistent outperformance before revising long‑term forecasts. Overall, the update portrays a company steering toward higher‑value categories and tighter cost control under new leadership, while navigating external macro pressures and internal restructuring to sustain the momentum.