SHERIDAN, WYOMING – Feb. 13, 2025 – Nestlé S.A. today announced its full-year 2024 results, highlighting solid performance amidst a challenging macroeconomic environment and soft consumer demand. The company reported organic growth of 2.2%, a return to positive real internal growth (RIG) of 0.8%, and free cash flow of CHF 10.7 billion. The Board of Directors proposed an increase in the dividend per share to CHF 3.05.
Solid 2024 Performance
Nestlé CEO Laurent Freixe 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.”
Despite these positive results, Nestlé acknowledged challenges, including a slowdown in category growth and below-market development in some areas. The company emphasized its focus on accelerating category growth and improving market share performance in 2025 and beyond.
Accelerating Growth and Transforming for the Future
Nestlé has outlined a clear roadmap to accelerate performance and transform for the future. A central component of this plan is increasing investment to drive growth. This includes delivering superior product taste and quality with unbeatable value, scaling winning platforms and brands, accelerating the rollout of innovation ‘big bets,’ and addressing underperforming business cells.
“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,” Freixe explained.
To fuel these growth investments, Nestlé has initiated a new CHF 2.5 billion three-year cost savings program, “Fuel for Growth.” The company has already secured over CHF 300 million of these savings for 2025.
Key Financial Highlights
- Organic sales growth of 2.2%, with RIG of 0.8% and pricing of 1.5%.
- Underlying trading operating profit (UTOP) margin of 17.2%.
- Net profit down 2.9% to CHF 10.9 billion.
- Basic EPS down 1.0% to CHF 4.19.
- Free cash flow improved to CHF 10.7 billion.
Strategic Initiatives and Outlook
Nestlé has implemented organizational changes to increase simplicity and strengthen accountability, including a reduction in geographic reporting segments and a renewed performance management framework. The company is also accelerating its digital transformation.
Looking ahead, Nestlé's 2025 outlook remains unchanged. The company expects organic sales growth to improve compared to 2024 and a UTOP margin at or above 16.0%.
Operational Review and Growth Drivers
The report details growth across various categories, with coffee, confectionery, and PetCare leading the way. Emerging markets and Europe were key growth drivers by geography. The company also highlighted its focus on strengthening value propositions, increasing advertising and marketing spend, and driving innovation through key "big bets."
Efficiency and Productivity Initiatives
The “Fuel for Growth” cost savings program is expected to generate CHF 0.7 billion in savings in 2025, scaling to CHF 2.5 billion by the end of 2027. These savings will be reinvested into growth initiatives.
Financial Review and Performance by Segment
The financial review section provides a detailed analysis of sales, profitability, cash flow, and other key metrics. It also breaks down performance by operating segment, highlighting key growth drivers and challenges in each region. For example, Zone North America faced challenges in frozen food and coffee creamers, while Zone Europe saw strong performance in coffee and confectionery. Zone Asia, Oceania, and Africa experienced growth in various categories but also faced macroeconomic headwinds.
Conclusion
Nestlé's 2024 results demonstrate solid performance in a challenging environment. The company's focus on accelerating growth through increased investment, cost savings, and strategic initiatives positions it for continued success in the future. While challenges remain, Nestlé's leadership team expressed confidence in the company's ability to deliver superior, sustainable, and profitable growth.
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