Nestlé Leverages Pricing Strategy to Strengthen Organic Growth Outlook
Nestlé’s strategic price adjustments are poised to reinforce its organic growth, according to analysts at Baader Helvea. The firm noted that while organic sales volumes remain under short-term pressure, the pricing component of the growth equation has been stronger than anticipated and is expected to continue outpacing previous forecasts.
Baader Helvea reaffirmed its “Buy” rating on Nestlé shares and maintained a target price of CHF 126. The bullish stance is supported by the group’s sustained pricing momentum, which the analysts believe will drive resilient organic sales growth despite ongoing volume softness—a challenge impacting the broader food and beverage sector.
As cost inflation trends normalize, Nestlé is expected to capture the benefit of improved gross margins. Baader pointed to a favorable margin development in the second half of 2024 as pricing actions taken in previous quarters begin to filter through, particularly in key categories such as coffee, pet care, and nutrition.
This shift marks a strategic pivot from volume-led growth to value-driven expansion, aligning with evolving industry dynamics. Global FMCG players have increasingly relied on pricing to offset commodity cost volatility and supply chain disruptions over the past two years. Nestlé’s ability to preserve—and even grow—market share during this transition underscores the brand’s pricing power and disciplined execution.
Baader Helvea also referenced Nestlé’s mix improvement and ongoing portfolio optimization as levers that could support margin accretion. With consumer behavior adjusting to inflationary environments, the company’s premiumization strategy across multiple product lines could further reinforce brand equity and profitability.
While cautious about lingering macroeconomic headwinds, analysts emphasized that Nestlé is well-positioned to achieve both top-line resilience and bottom-line enhancement throughout 2024. The commentary acts as a signal to FMCG professionals that pricing strategies remain a vital tool for margin management amid shifting consumer and cost dynamics.