Nestlé?s investments to restore volume growth and its elevated costs associated with implementing efficiency measures will weigh on S&P Global Ratings-adjusted EBITDA margin, which we expect will decline to 20.0%-20.5% over 2025-2027 compared with 21.6% in 2024. Rather than improving, S&P Global Ratings-adjusted debt to EBITDA will remain at around 2.9x-3.0x over 2025-2027 by our estimate, a similar level as in 2024, before improving from end-2027 and more firmly in 2028 when we expect leverage to decline to about 2.6x. Nestlé?s elevated dividend distributions leave limited organic deleveraging opportunities, therefore a quicker reduction in leverage is linked to its ability to execute its strategy, dispose of some of its businesses under strategic review, and allocate proceeds to debt reduction. We
