Nestlé: Steady Growth and Ambitious Restructuring Drive Share Price Surge

Nestlé published its results for the first three quarters of 2025, showing moderate but steady growth. Organic revenue growth reached 3.3%, while real internal growth (RIG) stood at 0.6%. The company confirmed its target to maintain an operating profit margin of at least 16% and announced a comprehensive restructuring plan, which includes planned layoffs of around 16,000 employees by the end of 2027. Following the results announcement, Nestlé’s share price rose by 8%, marking the largest one-day increase in 17 years.

Financial Data for Nine Months 2025

• Organic revenue growth: +3.3%

• Real internal growth (RIG): +0.6%

• Sales revenue: CHF 65.87 billion

• Organic growth in Europe: +4.3%

• Asia, Oceania & Africa: +2.7%

• Americas: +2.5%

• Nespresso: +6.7%

• Nestlé Health Science: +3.8%

• Waters & Premium Beverages: +4.4%

• Other segments: +3.8%

• Pricing impact on revenue growth: +2.8%

• Operating profit margin forecast: minimum 16% (consensus 16.1%)

Restructuring and Savings Plan
Nestlé announced plans to reduce its workforce by approximately 16,000 positions over the next two years, including around 12,000 jobs in administrative functions and a further 4,000 in manufacturing and supply chain. The company doubled its savings target to CHF 3 billion annually and expects one-off restructuring costs to be roughly twice the planned savings.
Additionally, a strategic review of the Waters & Premium Beverages segment and selected mainstream and value brands in health and nutrition is ongoing, with potential divestitures or business partnerships being explored.

Market Reaction and Analyst Assessment
Following the report, Nestlé’s share price jumped 8%, the largest single-day gain in 17 years. It is important to note that the stock surge was driven not by the financial results themselves, which were mostly in line with expectations, but primarily by the announcement of restructuring and job-cut plans. The market and analysts have responded positively to this direction, recognizing signs of improvement in real internal growth and appreciating the ambitious savings targets. At the same time, they caution about risks related to foreign markets and challenges expected in the final quarter. Despite these concerns, the measures taken are seen as a solid foundation for the company’s further transformation.

Source: xStation5