Nestlé’s pet portfolio softens in FY2025, but cat food remains resilient

For the fiscal year (FY) 2025, ending 31 December, Swiss multinational Nestlé reported group sales of CHF 89.5 billion ($100B/€93B), down 2% year-over-year (YoY). Net profit for the period decreased 17% YoY to CHF 9 billion ($10B/€9.4B). Meanwhile, organic growth rose 3.5%.

The group’s pet portfolio registered a sharper decline in sales, down 2.5% YoY to CHF 18.4 billion ($20.6B/€19.2B). On the other hand, organic growth reached 2.2%. 

Purina, which contributed 21% of total group revenue, was led by wet and dry cat food, while partly offset by weakness in dry dog food. 

Increased market share

Nestlé’s pet business saw global market share increase, driven by Europe, where it delivered mid-single-digit growth. The portfolio’s underlying trading operating profit (UTOP) margin stood at 21.7%, slightly up from 21.6% in FY2024.

“Petcare continues to normalize, with softness in dog balanced by resilience in cat, and we see growth gradually accelerating as capacity improves and pricing steadies,” says CFO Anna Manz.

The fourth quarter of 2025 benefited from additional capacity in the US and some pre-price increase buy-in. Manz points out that this is because consumers wanted to avoid price increases in January.

The company expanded US capacity in Q4, but supply constraints in wet cat food limited growth in the first 9 months of the year.

Regional performance

In the Americas, total sales were CHF 34.5 billion ($38.5B/€36B), down 4.5% YoY, driven by a negative 7.3% impact from foreign exchange movements. Organic growth increased 2.8%. 

Pet care specifically presented “solid growth” across the zone, led by wet cat food in the US. The softness of dog food, however, impacted mainstream brands and snacks.

In Asia, Oceania and Africa, sales reached CHF 20.6 billion ($22.9B/€21.4B), with the strongest contributions from Central and West Africa, South Asia and the Philippines, partly offset by a decline in Greater China. 

Pet care saw negative performance in the area, driven by weak consumer demand in developed markets.

In Europe, organic growth rose 4.3%, with sales of CHF 17.6 billion ($19.5B/€18.3B). The pet segment delivered mid-single-digit growth across markets, strengthened by brands Felix, Pro Plan, Gourmet and Purina ONE.

Yearly guidance

For FY2026, Nestlé expects global organic sales growth (OG) of 3% to 4%, with accelerating real internal growth (RIG) compared with 2025, driven by focused growth plans.

CFO Anna Manz notes that the range includes an expected impact of approximately 20 basis points from sales returns and stock shortages related to the infant formula recall. “Additional impact is uncertain and could drive OG toward the lower end of the range.”

In addition, the UTOP margin is expected to improve compared to 2025, with stronger gains in the second half of the year. 

“We delivered a solid performance, in line with our guidance, despite increased headwinds. We accelerated growth, with momentum building through the year, and we continued to invest meaningfully behind our brands. All of this sets us up well for 2026,” Manz concludes. 

The company also highlighted the expected contribution of pet therapeutics and supplement segment as a category growth for FY2026, which can be boosted by innovation on top conditions, such as gastrointestinal, allergy, urinary and joint.