Nestlé Reviews VMS Brands, Maintains 2025 Outlook

Nestlé reported first-half 2025 organic sales growth of 2.9%, driven mainly by price increases amid inflation in key inputs like coffee and cocoa, while reported sales fell by 1.8% to 44.2 billion Swiss francs due to currency headwinds. Operating profit declined as a result of high raw material costs. The company maintained its 2025 outlook, aiming for improved organic growth and an operating margin of at least 16%. CEO Laurent Freixe, appointed to revive growth, announced a strategic review of underperforming mainstream and value vitamins, minerals, and supplements brands—potentially including divestments of assets like Nature’s Bounty and Puritan’s Pride to focus on premium offerings. This move follows industry trends as competitors streamline portfolios and comes amid investor pressure and leadership changes. Notably, Chairman Paul Bulcke has stepped down.