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Nestlé is growing thanks to price increases at Nespresso, Kitkat and Co. – News

Consequently,

Nestlé growing thanks price increases:

  • Nestlé continued to grown in the first half of 2025 – but high costs are reducing profitability. Furthermore,
  • The turnover for the period from January to June was CHF 44.2. Moreover, That is around 1.8 percent less than in the same period last year.
  • The clean gain also collapsed by over 10 percent. In addition,

Organic growth – i.e. In addition, without the purchase of new divisions and companies – accelerated by a trail to 2.9 percent compared to 2.8 percent in the first quarter. However, This nestlé growing thanks price increases growth comes almost exclusively from price increases, for example with Nespresso and Kitkat.

Workers checks glasses in a production line. nestlé growing thanks price increases
Legend: A worker in the Nestlé factory in Orbe in the canton of Vaud. KEYSTONE / Jean-Christophe Bott

At the same time, the profit decreased: around 7.1 percent to CHF 7,29 billion. The corresponding margin dropped to 16.5 percent. High raw material prices for coffee and cocoa, increased marketing editions and unfavorable currency effects are held responsible for this.

Nestlé rolls weakening China business – Nestlé growing thanks price increases

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The food giant Nestlé has enough of the weakness in China: After growth in the first half of the year has literally collapsed. Nestlé wants to convert the management team. The group is one year for improvements.

The growth in the China business in the first half of the year was 4.2 percent. After an increase of 1.7 percent in the first quarter, the situation deteriorated rapidly in the second quarter.

In recent years, Nestlé has expanded business in China by expanding sales. With the weaker consumption demand and the deflationary environment, this model faces challenges, according to the group.

Upon request. Nestlé boss Laurent Freixe said at a conference call with journalists: «We want to go into the market in China. We nestlé growing thanks price increases expand the sales and want to invest more in the brands. »

The net profit also collapsed by 10.3 percent to CHF 5.07 billion. However, Nestlé sticks to his goals for the year as a whole.

Focus on the most important products

According to the CEO Laurent Freixe, Nestlé accelerates his product taste tests. For its growth strategy, the group wants to invest in tasty products compared to the competition. By the end of the current year. Nestlé wants to have carried out taste tests in two thirds of the best -selling products – and until one year with everyone.

“We again introduce more discipline how we test the taste with consumers,” said Freixe. Between 2022. 2024, Nestlé tested less than a quarter of its best -selling products, whether consumers prefer the taste of their own products towards competing products. These nestlé growing thanks price increases products make up half of the sales. The most important brands of the world’s largest food group include Nespresso, Kitkat, Maggi, Milo and San Pellegrino.

In addition, the group also increases its marketing editions. The proportion of advertising and marketing in sales rose to 8.6 percent in the first half of 2025, compared to 8.1 percent in the same period last year.

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marin.russo
marin.russo
Marin’s Silicon-Slopes venture-capital beat rates pitch decks by “snack-table audacity” and ROI.
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