Bulletin: Nestlé Has Limited Rating Headroom For Underperformance Or Elevated Discretionary Spending

This report does not constitute a rating action. MILAN (S&P Global Ratings) Feb. 17, 2025--S&P Global Ratings said today that Nestlé S.A.?s (AA-/Stable/A-1+) operating performance in fiscal 2024 was slightly better than we had expected. However, as anticipated, S&P Global Ratings-adjusted debt to EBITDA rose to almost 2.9x in 2024, from 2.6x in 2023, which is at the upper end of the range commensurate with our ?AA-? rating. In fiscal 2025, we expect the group will manage discretionary spending to ensure leverage remains at about 2.9x-3.0x. However, we think deleveraging will be prevented by increased marketing spending--particularly for key brands--elevated cocoa and coffee prices, and by efforts to reorganize the business and implement procurement, commercial and operational efficiency measures. Nestlé?s

...February 17, 2025 This report does not constitute a rating action. MILAN (S&P Global Ratings) Feb. 17, 2025--S&P Global Ratings said today that NestlT S.A.'s (##- /Stable/A-1+) operating performance in fiscal 2024 was slightly better than we had expected. However, as anticipated, S&P Global Ratings-adjusted debt to EBITDA rose to almost 2.9x in 2024, from 2.6x in 2023, which is at the upper end of the range commensurate with our `##-' rating. In fiscal 2025, we expect the group will manage discretionary spending to ensure leverage remains at about 2.9x-3.0x. However, we think deleveraging will be prevented by increased marketing spending--particularly for key brands--elevated cocoa and coffee prices, and by efforts to reorganize the business and implement procurement, commercial and operational efficiency measures. NestlT's full-year 2024 results, published Feb.13, posted revenue of Swiss franc (CHF) 91.7 billion (about 97 billion), a 1.7% decline on 2023 on a reported basis. This included...

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