Nestlé (NESN) Company presentation summary

H1 performance and outlook

• H1-26 organic growth 3.6%, including RIG 1.5% and pricing 2.1%; UTOP margin 16.4%, free cash flow CHF 3.4bn and underlying EPS CHF 2.22.

• 2026 guidance: organic growth 3%-4%, UTOP margin improving vs 2025 and free cash flow above CHF 9bn; H2-26 UTOP margin expected broadly similar to H1-26.

• Medium-term targets: organic growth 4%+ and RIG 2%+ in normal market conditions; RIG is accelerating vs 2025.

• Gross profit margin rose sequentially to 46.4% in H1-26 from 44.6% in H2-25; UTOP margin increased to 16.4% from 15.7%.

Growth priorities and investment

• Priorities for 2026 and beyond: winning portfolio, RIG-led growth, transformation and efficiency, cash and capital allocation, and performance culture.

• Growth model targets core business OG of 3%-4% and RIG of 1%-3%; growth platforms target high-single-digit OG and mid-single-digit RIG.

• H1-26 advertising and marketing reached 8.9% of sales, up from 8.6% in H1-25; paid media is concentrated on 135 brands, down from 400.

• Growth platforms delivered 7% OG; investment focus includes cold coffee, pet therapeutics, medical nutrition and KitKat.

• Marketing execution priorities include stronger MROI coverage, retail digital media and influencer marketing; non-working media spend is below 20%.

Portfolio and category positioning

• Announced a 50:50 waters JV, with CHF 4.5bn enterprise value and ~CHF 2.8bn net cash proceeds; expected to close in H1-27.

• Other portfolio actions include progressing sales of mainstream VMS and ice cream businesses, acquiring yfood’s remaining 51% stake, and selling Blue Bottle Coffee.

• Nutrition portfolio spans medical, infant, kids and family, and adult nutrition; 2025 category sales range from CHF 2bn to CHF 6bn, with projected category CAGRs of 1%-7% through 2030.

• Four business areas are Coffee, Petcare, Nutrition, and Food & Snacks, supported by local market execution and strategic above-market activities.