Nestle: Improving Growth, Stronger Cash Flow, And A Reaffirmed Buy Case

Mare Evidence Lab 6.13K Followers Follow Summary Q2 organic growth reached 3.7%, supported by 1.8% real internal growth and 1.9% pricing. Reported sales increased only 0.8% to CHF 21.79 billion because of a roughly 3% FX headwind. H1 underlying operating profit declined 2.8% to CHF 7.08 billion, with the margin easing by 10 basis points to 16.4%. Free cash flow increased 46.3% to CHF 3.38 billion, while lower financial expenses and continued cost savings supported the broader investment case. The planned Peranel joint venture should also generate CHF 2.8 billion in cash and improve portfolio focus. Despite near-term volatility and continuing FX pressure, management execution is improving and growth is reaccelerating. Our buy is confirmed. HJBC/iStock Editorial via Getty Images On 23/07/2026, Nestlé ( NSRGY ) ( NSRGF ) ( NEST:CA ) released its Q2 results. Before going into our investment case, it is important to note that, under the new Nestlé management, the company is reaccelerating growth while This article was written by Mare Evidence Lab 6.13K Followers Follow Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NEST:CA, NSRGY, NSRGF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.