Nestle(US:NSRGY) Sou Hu Cai Jing·2025-07-25 04:50Core Viewpoint - Nestlé reported a decline in revenue and net profit for the first half of 2025, attributing the downturn to a shift in business strategy and external economic factors [2][3]. Financial Performance - Global revenue for the first half of 2025 was 44.228 billion Swiss francs, a decrease of 1.8% year-on-year [3]. - Net profit was approximately 5.065 billion Swiss francs, down 10.3% compared to the previous year [2][3]. - The organic growth rate was 2.9%, with a pricing contribution of 2.7% and a real internal growth rate of 0.2% [3][4]. Regional Performance - In the Greater China region, sales amounted to 2.470 billion Swiss francs, reflecting a decline of 6.4% year-on-year [7]. - The organic growth rate in Greater China was -4.2%, with a real internal growth rate of -1.5% and a pricing contribution of -2.7% [7]. Business Segments - The powdered and liquid beverages segment generated revenue of 12.308 billion Swiss francs, maintaining its position as the largest business segment [4]. - The pet care segment achieved revenue of 9.229 billion Swiss francs, with an organic growth rate of 1.3% [5]. - The confectionery segment showed strong performance with an organic growth rate of 8.5%, driven by a 10.6% increase in pricing [5]. Strategic Initiatives - Nestlé is focusing on enhancing its value proposition to stimulate consumer demand, with expectations of returning to sustainable growth within a year [9]. - The company is investing in high-growth areas such as ready-to-drink coffee and pet health products, with six major global innovation projects generating over 200 million Swiss francs in sales [6][9]. Management Changes - Nestlé has made significant management changes in the Greater China region, appointing a new CEO to drive performance improvements [8].