Nestlé and Unilever, the goal for the future is cost containment

The FMCG sector is expected to be substantially counter-cyclical. But these are products on which the price lever has considerable weight and, therefore, here too the unknowns about US duties worry the major players not a little.

The two European giants Nestlé and Unilever closed the 2024 financial year with results that were little changed from the previous year; the Swiss group saw revenues fall 1.8% to Chf91,354m (but +2.2% at constant exchange rates and perimeter), while Ebit rose 4.7% to Chf14,724m (-2.2% to Chf15,704m on a recurring basis) and net profit fell 2.9% to Chf10,884m. For its part, Unilever reported a turnover of EUR 60,761 million (+1.9%), while Ebit fell 3.7% to EUR 9,400 million and net profit by 11.5% to EUR 5,744 million (mainly due to a higher tax rate, with the tax rate rising from 23.5% to 28.2%).

Both groups reported Q1 2025 revenues, which did not deviate significantly from the previous year's trend. Nestlé saw sales rise by 2.3% to Chf22,601m (+2.8% at constant exchange rates and perimeter), while Unilever's sales stood at Chf14,963m (-0.9%, but +3% at constant exchange rates and perimeter). For the full year 2025, Nestlé confirmed the guidance that forecasts an increase in revenues (unquantified) on an organic basis, partly due to targeted actions on the selling prices of some products to address the inflationary growth of some raw materials (particularly cocoa and coffee). Recurring Ebit margin on an organic basis is expected to be at least 16% (17.2% in 2024), with significant investments in advertising and marketing to support growth. However, significant cost savings are also expected (Chf 2.5 billion by the end of 2027, of which Chf 0.7 billion in 2025). As for Unilever, sales on an organic basis are expected to rise between 3% and 5% in 2025 and the recurring Ebit margin should increase slightly from 18.4% in 2024.