Laurent Freixe, Nestlé CEO commented: "In a challenging macroeconomic context and soft consumer environment, we achieved a solid performance in 2024 in line with our latest guidance. Organic growth was 2.2%, with a return to positive real internal growth of 0.8%, and both strengthened in the second half. Free cash flow improved to CHF 10.7 billion, and the Board proposes an increase in the dividend per share to CHF 3.05.

We have a clear roadmap to accelerate performance and transform for the future. Increasing investment to drive growth is central to our plan. This means delivering superior product taste and quality with unbeatable value, scaling our winning platforms and brands, accelerating the rollout of our innovation ‘big bets' and addressing underperformers. We are creating the fuel for these growth investments through our new CHF 2.5 billion three-year cost savings program. We are making good progress and have already secured over CHF 300 million of these savings for 2025.

From 2025, we expect our actions to drive an improvement in organic sales growth, with a lower underlying trading operating profit margin in the short term as we invest for growth. While there is macroeconomic uncertainty, we have lots of opportunities ahead of us, and we have the strategy, the resources and the people and team to deliver."

Financial highlights

• Broad-based organic growth despite soft consumer demand, with a return to positive RIG
• Organic sales growth of 2.2%, with real internal growth (RIG) of 0.8% and pricing of 1.5%.
• Growth strengthened during the year; organic growth was 2.1% in H1 and 2.3% in H2, with RIG improving from 0.1% in H1 to 1.4% in H2.
• Growth was led by coffee, confectionery and PetCare; by geography, growth was driven by emerging markets and Europe.

Strong free cash flow generation, continued dividend per share growth

• Free cash flow improved to CHF 10.7 billion; proposed dividend per share (DPS) increased to CHF 3.05.

Operational and strategic progress and outlook

• Organizational changes implemented to increase simplicity and strengthen accountability
• Reduction in geographic reporting segments from 5 Zones to 3 Zones; Nestlé Waters and premium beverages now a standalone global business.
• Renewed performance management framework and incentive plans to increase alignment.

CHF 2.5 billion cost savings program launched, with first results already achieved

• Fuel for Growth cost savings in 2025 expected to be CHF 0.7 billion, reaching CHF 2.5 billion by the end of 2027.
• Over CHF 300 million savings for 2025 already secured from actions taken since Q4 2024.

Plan to drive growth through increased investment and better execution

• As laid out at the recent Capital Markets Day, clear focus on accelerating category growth and improving market share performance in 2025 and over the medium term.
• Action plans now developed for 18 key underperforming business cells, which represent 21% of sales; execution is progressing, with early signs of improvement in some cells.
• Growth investments stepping up, including an increase in advertising and marketing to 9% of sales by the end of 2025.
• Innovation now focused to drive greater impact, with six ‘big bets' for 2025 benefiting from accelerated global rollout plans.

Zone Europe

In Zone Europe, our sales growth was broad-based, with improved market share trends in a number of categories. Growth was mainly pricing led, reflecting the inflationary environment for coffee and confectionery, supported by positive RIG in coffee and PetCare. Growth was impacted by temporary delistings in the third quarter, but recovered in the fourth quarter, driven by coffee and confectionery. 

Financial highlights in Zone Europe

• Organic growth was 3.3%, comprising 0.8% RIG and 2.5% pricing.
• Reported sales decreased by 1.0% to CHF 18.9 billion, including -2.5% impact from foreign exchange movements and -1.9% from net divestitures.
• Market share gains were achieved in coffee and PetCare, with losses in confectionery and water.

Key sales growth drivers by product category in Zone Europe

• Coffee posted mid single-digit growth, driven by Nescafé soluble coffee and Starbucks products.
• Sales in confectionery grew at a mid single-digit pace, driven by KitKat and key local brands.
• PetCare delivered low single-digit growth, led by Purina ONE, Gourmet and ProPlan.
• Nestlé Professional achieved mid single-digit growth, driven by beverage solutions.

Nestlé România financial results for 2024

"We finalized 2024 with an organic growth of 4.5%, a healthy and continuous growth, in line with our expectations in recent years. In 2025 we will continue to apply the same long-term strategy, focus our growth efforts on our iconic brands supported by a fantastic team and contribute to the community, which we permanently support through educational projects and donations. The Nestlé Romania team thanks all consumers and business partners who have been with us for 29 years!" says Silvia Sticlea, Country Manager Nestlé Romania.

At the level of 2024, Nestlé Romania's community involvement continued through projects and education campaigns for balanced nutrition and recycling, reaching over 100,000 students nationwide, donations of over 60 tons to the Food Bank, and the planting of another 20,000 acacia trees in the Nestlé Honey Forest.

2025 Global outlook unchanged

• Guidance in line with previous outlook, as accelerated delivery of cost efficiencies offsets recent increases in key commodity prices.
• Organic sales growth expected to improve compared to 2024, strengthening through the year as we continue to deliver on our growth plans.
• Guidance assumes no significant change in key macroeconomic variables.