Nestlé beats Q2 organic sales estimates, forms waters JV with Platinum Equity

Nestlé SA reported second-quarter organic sales growth that edged past analyst expectations and announced plans to spin off its waters and premium beverages business into a joint venture with private equity firm Platinum Equity.

"The results reflect continued resilience in our core categories," Nestlé CEO Laurent Freixe said in a statement Thursday. "The joint venture with Platinum Equity will allow our waters business to reach its full potential under dedicated ownership."

Organic sales rose in the low single digits during the quarter, slightly exceeding consensus estimates, the Vevey, Switzerland-based company said. The company did not disclose exact revenue or profit figures for the period. Nestlé's organic sales growth has been under pressure in recent quarters as consumers traded down to cheaper private-label alternatives across Europe and North America.

The waters and premium beverages joint venture with Platinum Equity marks one of the largest portfolio reshuffles under Freixe, who took the helm in 2024. Nestlé's waters division includes brands such as Perrier, San Pellegrino and Acqua Panna. Financial terms of the transaction were not disclosed.

The deal comes as Nestlé sharpens its focus on higher-growth categories including coffee, pet care and nutritional health products. The company has been reviewing its portfolio since last year, seeking to shed slower-growing assets while investing in areas with stronger margins and demand.

Nestlé shares traded higher in Zurich following the announcements. The stock has declined about 8% over the past 12 months, underperforming the broader European consumer staples sector.

The guidance raise from the organic sales beat signals that Nestlé's pricing power and volume trends are stabilizing after a prolonged period of consumer pullback. Investors will watch the company's half-year earnings call for updated margin targets and details on the waters JV timeline.

This article is for informational purposes only and does not constitute investment advice.