Press Release: Nestle: Half-year results 2026: execution driving RIG

[Ad hoc announcement pursuant to Art. 53 LR]

This press release is also available in Français (pdf) https://www.globenewswire.com/Tracker?data=N4W6QEeLr8FtqC-2Z9W7SFwfdCDr1hylCoNcH2EgMy0mopRmYstZBk0wpXoTUbAZDtvVNN4CwoGrWYJ3DgeKO6gGTB1rmFKaU7pGKUN66x6hd-z_gPn5gvldtkzlFsIHVcy8e9kKTHtUPJDLmQsJbfT5vzhVFguGfvIFejBa4SyX2mcnQHyxhQy3Trf7PTGO and Deutsch (pdf) https://www.globenewswire.com/Tracker?data=AHMIbG_qhqLdp3_viFLvzsQdX3_U1J_Kven_P8HDY8rBcLDaSHMQNZHz5hRQneYUXvRKsjCBaVKPTAmkvXM3Go94OlGqw8azKr3WMhlR3wS-s5Iqn5WeySjbkWPdSB5_U0aDFBTBPSqoF_psJBfezeXKrtiA0sNaMD6ViX7tvECsqCWSMIdiioi0XXv07Q1j

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Reports published today

Half-Year Report (pdf) https://www.globenewswire.com/Tracker?data=G7tC6vJgqyziom4Pp6KoPhnqxxaGjoLJYUXyErmU8fUhrqar8IgXZS7M-1IwKFHugjfRv-u49RSO-LahV8Pcf8DVzxZEEik005shs_yFI5o1JoPYdSV5aLTY_-MqQV0V2QnDh0FyGR9nPh2q8bUpxpnp4ichwHma9LH7AwDmAYP9cAF5yTp2g3PM51eFvSvI

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Half-year results 2026: execution driving RIG

Philipp Navratil, Nestlé CEO commented: "Our RIG-led growth strategy is delivering, with organic growth of 3.7% and RIG of 1.8% in Q2, making steady progress towards our medium-term guidance. Emerging markets growth accelerated, and we delivered solid performance in developed markets. We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest. While the external environment remains uncertain, we are taking actions to accelerate consistent growth."

Results performance summary

In millions of CHF, unless stated H1-2026 H1-2025 Reported change

- Real internal growth (RIG) 1.5% 0.2%

- Pricing 2.1% 2.7%

Organic growth 3.6% 2.9%

Net acquisitions/(disposals) 0.1% 0.0%

Foreign exchange movements - 6.2% - 4.7%

Reported sales growth - 2.5% - 1.8%

Sales 43,109 44,228 - 2.5%

Underlying trading operating profit 7,081 7,287 - 2.8%

Gross profit margin 46.4% 46.6% - 20 bps

Underlying trading operating profit margin 16.4% 16.5% - 10 bps

Net profit(1) 3,472 5,065 - 31.4%

Basic EPS (CHF) 1.35 1.97 - 31.4%

Underlying EPS (CHF) 2.22 2.27 - 2.4%

Free cash flow 3,375 2,307 46.3%

(1) Profit for the year attributable to shareholders of the parent

Financial highlights

Broad-based organic growth (OG) with improving RIG

-- H1-26 OG of 3.6%, with real internal growth (RIG) of 1.5% and pricing of

2.1%.

-- Q2-26 OG of 3.7%, with RIG improving to 1.8% and pricing of 1.9%.

-- OG positive in all zones, globally managed businesses and product

categories in Q2.

-- Emerging markets (EM) performance strengthened in H1; OG of 7.1% and RIG

of 3.9% in EM excluding China. China now stable, planned trade inventory

reduction completed.

-- Solid growth in developed markets with OG of 2.3% and RIG of 0.6% in H1.

Sell-out is robust in the US and consumer demand is holding up in Europe.

Sequential profit progression while increasing investment

-- H1-26 underlying trading operating profit (UTOP) margin of 16.4%, down 10

basis points (bps) year-on-year; good sequential improvement (vs 15.7% in

H2-25).

-- Net profit of CHF 3.5 billion, basic earnings per share (EPS) of CHF

1.35.

-- Free cash flow of CHF 3.4 billion, reflecting actions to strengthen cash

generation.

Operational and strategic updates

Continued acceleration of RIG towards 2%+ medium-term target

-- Growth platforms delivering 7% OG with mid single-digit RIG, supported by

increased investment.

-- Advertising and marketing expenses up to 8.9% of sales -- investing more

and better. 'KitKat heist' campaign won 9 Cannes Lions awards.

Portfolio actions sharpening our focus on four core businesses

-- Partnership announced to form 50:50 JV for waters and premium beverages;

net cash proceeds of approximately CHF 2.8 billion expected in H1 2027.

-- Mainstream vitamins, minerals & supplements (VMS) and ice cream

businesses also now classified as 'assets held for sale' as sale

processes progress.

-- Acquired remaining stake in leading smart food brand yfood and divested

Blue Bottle Coffee.

Transformation and cost savings programs on track

-- Cumulative Fuel for Growth cost savings now up to CHF 1.7 billion; on

track for target of CHF 2.0 billion for 2026.

2026 guidance

-- OG expected to be in the range of 3% to 4%, with RIG accelerating versus

2025, driven by our focused growth plans.

-- UTOP margin expected to improve versus 2025; second half margin now

expected to be broadly similar to the first half.

-- Free cash flow expected to be above CHF 9 billion.

Note: 2025 figures were restated as of January 1, 2026, following the integration of the Nestlé Health Science Globally Managed Business into the Nutrition business of the three Zones and the decision to focus Nestlé's portfolio on four categories.

Follow today's event live

09:30 CEST Investor & analyst call - video webcast https://www.globenewswire.com/Tracker?data=x_j1vtkP7jUpBwYUOK1Yhn-ScFC03uySN6nKyOJyeHOXPldXX6JksvmuKByS36sScWwqpibKJETizVs3Su9B9pDHYdwL4d0yl3LDOYFa88yXg6Wnn8BM16_qMdoIis3o_MxuWrt7B1r2eGxvbblnWEiDdjlgKwbH9Py0hEtxvHy7IJVfjjJzl6MQZwJFKaYb

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PDF press releases:

-- English (pdf, 446Kb):

https://www.nestle.com/sites/default/files/2026-07/half-year-results-press-release-2026-en.pdf

-- Français (pdf, 446Kb):

https://www.nestle.com/sites/default/files/2026-07/half-year-results-press-release-2026-fr.pdf

-- Deutsch (pdf, 394Kb):

https://www.nestle.com/sites/default/files/2026-07/half-year-results-press-release-2026-de.pdf

Reports published today:

-- 2026 Half-Year Report (pdf, 556Kb):

https://www.nestle.com/sites/default/files/2026-07/half-year-report-2026-en.pdf

-- Rapport semestriel 2026 (pdf, 586Kb):

https://www.nestle.com/sites/default/files/2026-07/half-year-report-2026-fr.pdf

-- Halbjahresbericht 2026 (pdf, 585Kb):

https://www.nestle.com/sites/default/files/2026-07/half-year-report-2026-de.pdf

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=WSSQA8wTQH4KvkervsHoJ4qkE9CMZTHaAKUXYzATWjp0ZfZNmVB3ENY1eYt5q8yLjwa23k44J50PFEkLVOMFJnx0bagfw1HEs_j8nUI-Atz1fo9MBL7_YcOFF5SlqKfE

Investors:

David Hancock Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=EWmym--1jMl2laAAY8vdJyy2WAiS3c_cLHWAQkmL-N-JpRJp2epeXKf4F6EWlPIc5yWoipP1Vv3KBkIzikxmdQ==

Financial reivew

Sales

Total reported sales in H1-26 were CHF 43.1 billion. Organic growth was 3.6%. Pricing was 2.1%, reflecting roll-over pricing from 2025 supported by incremental pricing actions this year. RIG was 1.5% in the first half, improving from 1.2% in Q1 to 1.8% in Q2. RIG was positive across all of our categories in Q2 and performance in emerging markets was particularly strong. Foreign exchange movements had a negative impact of 6.2%.

By product category, H1 growth was broad based, led by Coffee and Food & Snacks. Coffee OG was 7.5%, driven by Nescafé. In Petcare, OG was 2.7%, driven by continued strength in cat and an improvement in dog in Q2. Nutrition OG was -1.2%, with strong performance in adult and medical nutrition offset by infant nutrition. The infant formula recall had an impact on group OG of approximately 90 bps in Q1 and 30 bps in Q2. We expect to regain share by the end of the year. Food & Snacks OG was 3.7%, supported by strong performance in global brands such as Maggi, KitKat and Milo.

By geography, OG in developed markets was 2.3%, with RIG of 0.6% and pricing of 1.7%. In emerging markets, OG was 5.6%, with RIG of 2.8% and pricing of 2.8%. Greater China is now stable, a year after we took action to reduce trade inventory and redefine our operating model.

By channel, OG in retail sales was 3.6% and in out-of-home channels was 4.1%. Within retail, e-commerce had OG of 12.2% and reached 21.8% of total Group sales.

Gross profit and operating profit

Gross profit was CHF 20.0 billion. The gross profit margin decreased by 20 bps to 46.4% due to higher coffee and cocoa prices flowing through the P&L, the impact of the infant formula recall and headwinds from tariffs, largely offset by cost savings and net pricing.

Distribution expenses as a percentage of sales were 8.4% versus the prior year at 8.3%.

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