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Shares of Nestlé jumped by 9.3% on Thursday. The Switzerland-based firm is famous for its long history dating back to the 1860s and a vast portfolio of very popular brands of food, snacks and beverages like KitKat chocolate bars, Nescafé and Nespresso coffee, Gerber nutrition for babies, and Purina pet care. The company reported solid “real internal growth" (RIG) than it was widely expected, even though outlining some cost reductions plans under new chief executive Philipp Navratil.

RIG is a financial metric that measures a company's sales growth purely from volume increases, while stripping out the balloon effect of price hikes and acquisitions. RIG compares the current year's sales volume, valued at the company's prices of the previous year, to the actual sales of the prior year. This seems different from the concept of organic growth, which reflects overall results including new products and opening new locations. While Nestlé 's organic growth for the first nine months of 2025 was at 3.3%, it was reportedly driven by 0.6% of RIG plus about 2.8% from pricing. Meanwhile, its last quarter's organic growth improved to 4.3%, with RIG rising to as much as 1.5%.

The huge progress that has impressed investors so much is complemented by the firm's restructuring plans to generate extra annual savings of CHF 1 billion by 2027. This may come at the cost of cutting 16,000 jobs globally within a frame of the so-called “Fuel for Growth” program. You may like this or not, but market crowds usually like such things when they are effective. Everything is sold everywhere as fast as possible. Americas reported CHF 25.3 billion in sales with 2.5% organic growth. Asia, Oceania and Africa posted CHF 15.3 billion with 2.7% growth. Even the stagnating EU countries altogether recorded CHF 12.8 billion with 4.3% growth in sales. China's market reduced organic growth by 0.8 percentage points in the third quarter, but there is a great potential to contribute more.

Records among product categories are confectionery (+8%), powdered and liquid beverages like  Nescafe Dolce Gusto (Nesquik) etc (+7.5%), Nespresso (+6.7% of organic growth fuelled well by pricing and double-digit numbers in the US and Canada, waters & premium beverages like Maison Perrier and Sanpellegrino (+4.4%). And all this taken together will generate operating profit margin exceeding 16% and supposedly more than CHF 8 billion in free cash flow in 2025. The accomplished clear break through the "double bottom" pattern technical resistance this week has already resulted in a price touch of above CHF 83, paving the path for the further move to at least CHF 90, if not CHF100.

Navratil said his priority is to strengthen growth through sharper execution and disciplined resource use. “Driving RIG-led growth is our number one priority,” he emphasized, as “the world is changing, and Nestlé needs to change faster”. I can't read his mind but I am buying this.