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Nestlé

Growth led by volume, Medium term

We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest
Philipp Navratil, Nestlé’s chief executive, on the first half of 2026

Growth led by volume

Nestlé sold CHF 43.1 billion in the first half of 2026 and its organic growth was 3.6%, of which volume and mix, its real internal growth, was 1.5% and price 2.1%. Its aim is to lift real internal growth to over 2% a year in the medium term. It is narrowing the group to four core businesses, selling or spinning out waters, mainstream vitamins, and ice cream, and paying for more marketing behind its brands from a cost programme, Fuel for Growth, that has delivered CHF 1.7 billion.

Growth led by volume

Four core businesses

Fuel for Growth

Growth led by volume

  1. 1.RIG above 2%: Accelerate real internal growth toward a medium-term target of over 2%.
  2. 2.Growth platforms: Invest more behind growth platforms, which are delivering 7% organic growth with mid single-digit real internal growth.
  3. 3.Investing in brands: Raise advertising and marketing to 8.9% of sales, up 30 basis points, and grow e-commerce, which is 21.8% of group sales.

Organic growth was 3.6% in the first half of 2026. Real internal growth rose to 1.5% from 0.2% a year earlier, and pricing fell to 2.1% from 2.7%.

Real internal growth improved from 1.2% in the first quarter to 1.8% in the second, and was positive in every category.

Emerging markets excluding China grew 7.1% organically, with real internal growth of 3.9%.

Real internal growth of over 2% a year

Nestlé’s organic growth in the first half of 2026 was 3.6%, made up of real internal growth, or volume and mix, of 1.5%, and pricing of 2.1%.

Sales, CHF billionOrganic growth: volume and mix, then priceH1 margin−2%0%+2%+4%+6%+8%Coffee12.1+7.5%19.0% −100 bpsFood & Snacks11.9+3.7%17.4% +50 bpsPetcare8.9+2.7%21.8% −30 bpsNutrition8.3−1.2%19.8% −90 bpsWaters & Premium Bev.1.8+5.1%9.5% +20 bpsGroup43.1+3.6%16.4% −10 bps
Real internal growth: volume and mixPricing

The margins are the first half’s underlying trading operating profit margins, with the change on the first half of 2025. Waters & Premium Beverages is the business Nestlé is putting into a joint venture.

CHF 3.0 billion of savings by the end of 2027

Fuel for Growth is Nestlé’s programme of procurement and operational savings. It saved CHF 0.6 billion in the first half of 2026, bringing the total to CHF 1.7 billion.

0123CHF 1.7bn
Before 2026: CHF 1.1bn, worked outFirst half of 2026: CHF 0.6bnMarks: CHF 2.0bn interim for 2026, CHF 3.0bn by the end of 2027

8.9%

of sales spent on advertising and marketing in the first half, up 30 basis points: the savings are meant to buy more behind the brands.

CHF 3.4bn

of free cash flow in the first half, from CHF 2.3 billion, and a guide of above CHF 9 billion for 2026.

Nestlé is focusing on four businesses

Nestlé has decided to focus on Coffee, Petcare, Nutrition, and Food & Snacks. Waters, mainstream vitamins, ice cream, and Blue Bottle Coffee are leaving, and it has bought the rest of yfood.

Joining

The four core businesses

Coffee
Petcare
Nutrition
Food & Snacks

Leaving

Waters and premium beverages

With Platinum Equity, at an enterprise value of EUR 4.9 billion, for about EUR 3.0 billion (CHF 2.8 billion) of cash proceeds at closing, expected in the first half of 2027.

Classifying the businesses being sold as held for sale cost a non-cash write-down of CHF 1.3 billion, and net profit fell 31.4% to CHF 3.5 billion.

  1. Split the growth into volume and price.

    Nestlé reports its 3.6% organic growth as 1.5% real internal growth and 2.1% pricing, and shows pricing shrinking from 2.7% while volume improves from 0.2%. We recommend showing growth as more units and higher prices separately, so that a plan cannot look healthy while all of its growth comes from asking customers to pay more.

  2. Draw the edges of the portfolio, and pay for the drawing.

    Nestlé is narrowing to four businesses, and classifying the ones it is selling as held for sale cost it a non-cash write-down of CHF 1.3 billion, which took net profit down 31.4% in the half. We recommend deciding what a plan will not do and expecting a cost when the decision is taken, so that the one-off cost is a known price of a clearer business.

  3. Name where the money for the push comes from.

    Nestlé paid for higher marketing, 8.9% of sales, from a named programme with a target, CHF 3.0 billion by the end of 2027, and a running total of CHF 1.7 billion. We recommend tying every increase in investment to the savings that fund it, so that spending more on growth does not depend on a good year.

Sources

  1. 1. Nestlé S.A. (2026). Half-year results 2026: execution driving RIG. Press release, 23 July 2026. nestle.com
  2. 2. Nestlé S.A. (2026). Half-Year Report January–June 2026. Nestlé Group, 23 July 2026. nestle.com

Headwater is not connected with Nestlé S.A. Nestlé, Nescafé, KitKat, Maggi, Milo, Nespresso, and Purina are trade marks of their owners. Updated 29 September 2026.

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