Nestlé reports  Q1 2025 sales growth of 2.8% despite price hikes

SWITZERLAND – Nestlé, the Swiss-based global leader in food and beverages, announced a robust 2.8% organic revenue growth for the first quarter of 2025, outperforming analysts’ expectations of 2.6%, as reported by the company’s latest quarterly statement. 

The growth was driven by a combination of price increases and modest volume gains, reinforcing Nestlé’s strong market position.

From January to March, Nestlé’s total revenue climbed to US$27.33 billion, up from US$26.69 billion in the same period last year. 

A 2.1% average price increase across its diverse product range was the primary catalyst, complemented by a 0.7% rise in sales volume. 

“Our ability to balance pricing and volume growth reflects the strength of our brands and trust from consumers,” said Nestlé CEO Mark Schneider.

Regionally, performance varied. In North and South America, revenue held steady at US$8.6 billion, showing resilience amid economic challenges. 

Asia, Africa, and Oceania posted a 3.6% revenue increase to US$5.5 billion, driven by strong demand for coffee and nutrition products.

Europe followed with a 2.5% rise to US$4.4 billion, supported by robust sales in dairy and confectionery.

The Nespresso division, known for its premium coffee and machines, led product categories with a 6.1% sales increase to US$1.6 billion. 

Nestlé Health Science, focusing on nutritional products, saw a 5.4% revenue boost to US$1.6 billion, reflecting growing consumer interest in wellness. 

The water and beverage segment also contributed, with sales up 3.9% to US$0.8 billion. 

“We’re seeing tremendous momentum in our coffee and health science portfolios, which are key to our growth strategy,” said Chief Financial Officer Anna Manz.

Nestlé reaffirmed its 2025 outlook, projecting sustained organic revenue growth and profitability of at least 16%. 

The company’s shares edged up 0.2% on the Swiss stock exchange following the announcement, with its market capitalization rising 16.7% to US$224.7 billion since January, far outpacing the 1.8% growth of the SMI index.

Operating in 188 countries, Nestlé manages over 2,000 brands, including household names like Nescafé, KitKat, and Purina, and employs approximately 277,000 people globally. 

The company’s ability to navigate inflationary pressures while maintaining consumer loyalty underscores its adaptability in a competitive market.

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