Nestlé Shares Jump as Turnaround Plan Offsets Sales Drop
Mondeum Capital (UK) Limited

Nestlé shares rose nearly 6% Thursday after first-quarter sales beat forecasts. Sales were still down year over year. Still, investors saw early signs of progress under the new CEO, who is leading a major restructuring.
This gain was notable amid Europe’s main stock index’s decline due to renewed Middle East tensions. Optimism about Nestlé, not general risk appetite, drove the market reaction. Sales reached 21.32 billion Swiss francs, beating analyst expectations. However, sales dropped 5.7% year over year.
Chief Executive Philipp Navratil joined Nestlé in June 2025 and became CEO in September 2025. He is focusing his turnaround plan on internal growth. This is measured by the amount of product sold, which is the main way the company tracks its progress.
On Thursday, Nestlé agreed to sell Blue Bottle Coffee to Centurium Capital. This move reflects a broader effort to focus on fewer, higher-priority brands. The company is also in talks with partners for its water and premium beverage business, signaling ongoing readiness to divest non-core assets.
Nestlé is investing more in mass-market brands. This quarter, Nespresso named pop star Dua Lipa as brand ambassador to target younger customers. Management called marketing updates central to their growth plan. The company expects organic revenue to rise 3% to 4% and sees real internal growth accelerating from last year. Nestlé noted that heightened tensions in the Middle East have increased uncertainty. Despite this, shares are down 38% from their January 2022 high, following years of weak results, complex operations, and a growing number of consumers moving away from processed foods.
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