Nestlé Finance International Ltd.
Annual Financial Report
Management Report and
Financial Statements
January 1 – December 31, 2025
(With Report of the Réviseur d’Entreprises Agréé thereon)
Registered Address:
40, Avenue Monterey
L-2163, Luxembourg
Grand Duchy of Luxembourg
RCS. No B136737
Subscribed capital: EUR 440 000
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 20252
3 Management Report
6 Report of the Réviseur d’Entreprises Agréé
13 Financial Statements for the year ended December 31, 2025
14 Balance sheet
15 Income statement
16 Statement of comprehensive income and loss
17 Statement of changes in equity
18 Cash flow statement
19 Notes
19 1. Corporate information
19 2. Accounting policies
25 3. Operating income, expenses and taxes
27 4. Derivative assets and liabilities
28 5. Financial instruments
31 6. Other assets and liabilities
31 7. Share capital, share premium and other reserves
32 8. Capital management
33 9. Debt securities
34 10. Transactions with related parties
36 11. Guarantees
36 12. Risks and uncertainties
41 13. Directors
41 14. Staff
41 15. Events after the balance sheet date
42 Responsibility Statement
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025 3
Nestlé Finance International Ltd. (“NFI” or the “Company”)
presents its annual financial report for the financial year
ended December 31, 2025. NFI is a public limited company
(société anonyme) organized under the laws of Luxembourg
and is a wholly-owned subsidiary of Nestlé S.A. which is the
holding company of the Nestlé Group of companies (the
“Nestlé Group” or the “Group”). NFI is established for an
unlimited duration. The Nestlé Group manufactures and
distributes food and beverage products in the following
categories: powdered and liquid beverages, water, milk
products and ice cream, nutrition products, prepared dishes
and cooking aids, confectionery and petcare. The Nestlé
Group also manufactures and distributes nutritional science
products through its globally managed business Nestlé
Health Science.
The principal activity of NFI is the financing of the Nestlé
Group companies, including by the sale, exchange, issue,
transfer or otherwise, as well as the acquisition by purchase,
subscription or in any other manner, of stock, bonds,
debentures, notes, debt instruments or other securities or
any kind of instrument and contracts thereon or relative
thereto. NFI may further grant any financial assistance
whatsoever to the members of the Nestlé Group, in
particular by granting loans, facilities or guarantees in any
form and for any term whatsoever and provide any of them
with assistance in any form whatsoever.
(A) Review of the development and performance of the
business during the financial year
As at December 31, 2025 a total equivalent of EUR 22 790
million of loans granted to Nestlé Group companies was
outstanding, compared to EUR 23 070 million as at
December 31, 2024. These were financed mainly through the
issuance of bonds, commercial papers and loans received
from Nestlé Group companies. Other assets and liabilities
comprise mainly derivatives, cash and cash equivalents
(consisting of cash balances and deposits at banks) and
short-term investments. The aforementioned transactions
are further detailed in the notes to the financial statements
of NFI for the financial year ended December 31, 2025.
Total assets were EUR 23 423 million and EUR 23 756
million as at December 31, 2025 and 2024, respectively. The
decrease results mainly from a decrease in loans granted to
Nestlé Group companies (by EUR 280 million), from a
decrease in cash and cash equivalents (by EUR 44 million)
and from a decrease in deferred tax assets (by EUR 9
million).
Total liabilities were EUR 23 327 million and EUR 23 682
million as at December 31, 2025 and 2024, respectively.
Debt securities outstanding at December 31, 2025 (EUR 22
372 million) decreased by EUR 732 million as compared to
December 31, 2024 (EUR 23 104 million) mainly as a result of
the repayment in full of a bond during the year with a face
value of EUR 500 million in accordance with its contractual
terms. In 2025, new bonds were issued for a an amount of
EUR 2’419 million which was partially offset by the net
decrease in commercial papers of EUR 2’217 million. Refer to
Note 9 for further details. This decrease was further driven
by favorable foreign exchange movements during the year
(EUR 440 million). Loans received from Nestlé Group
companies outstanding at December 31, 2025 (EUR 724
million) increased by EUR 329 million as compared to
December 31, 2024 (EUR 395 million).
NFI continued to report a profitable result in 2025,
marking its second consecutive year of profitability. The net
profit for the financial year ending December 31, 2025 was
EUR 16 million (2024: EUR 33 million). The net profit before
tax for the financial year ended December 31, 2025 was EUR
24 million, compared to a net profit before tax of EUR 42
million for the financial year ended December 31, 2024. The
change is due to an increase in intercompany interest
income (by EUR 36 million) resulting from the loans granted
to Nestlé S.A. and its affiliates, offset by an increase in third
party interest expense (by EUR 47 million) resulting from an
increase in debt securities issued at higher interest rate.
Finally, the profit before tax was also driven by a favorable
foreign exchange movement during the year (by EUR 10
million).
The net cash used in operations was EUR 9 million for the
financial year ended December 31, 2025 in line with the year
ended December 31, 2024 (EUR 10 million). Additionally,
NFI’s net operating cash inflow was EUR 527 million in 2025,
compared to a cash outflow of EUR 3’702 million in 2024
driven by the loan granted by Nestlé Group companies.
Finally, NFI’s net financing cash outflow was EUR 564 million
in 2025 compared to a cash inflow of EUR 3 953 in 2024
driven by the issuance of bonds and commercial papers.
Refer to Note 10 for further details.
The financial performance of NFI depends largely on the
net interest margin earned on loans and investments,
funded by issuance of bonds, commercial papers, loans
received from Nestlé Group companies and results from
derivative transactions. Management continues to closely
monitor market developments and take appropriate
measures to mitigate risks associated with interest rate
fluctuations.
Management Report
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 20254
(B) Risks and uncertainties
NFI is exposed to certain risks and uncertainties: credit risk,
market risk, liquidity risk and risk of an increase in cost of
capital, treasury operations and other risks that could have a
material adverse impact on its financial condition and
operating results. The detailed description of these risks and
uncertainties and NFI’s objectives, policies and processes
for managing these risks and uncertainties are disclosed in
the notes to the financial statements of NFI for the year
ended December 31, 2025, in particular in Note 12.
(C) Other items
NFI has no research and development costs nor any treasury
shares or branches.
(D) Corporate governance status
Overall control environment
The Board of Directors of NFI has overall responsibility for its
control environment. The Board of Directors is responsible
for monitoring the internal control and risk management
systems that are related to the financial reporting process on
an ongoing basis.
The internal control and risk management systems are
designed to mitigate, rather than eliminate, the risks identified
in the financial reporting process. In particular, internal controls
related to the financial reporting process are established to
mitigate, detect and correct material misstatements in the
financial statements.
NFI has a number of policies and procedures in key areas
of financial reporting, which are derived from the Nestlé
Group’s Accounting Standards, Risk Management Policy,
Treasury Policy, Information Security Policy and Business
Ethics Policy. These policies and procedures apply to all
subsidiaries of the Nestlé Group, including NFI. NFI complies
with the corporate governance guidelines of the Group.
Structure of capital
The share capital of NFI is divided in 220 000 shares having
a nominal amount of EUR 2 each. There is only one class of
shares issued and they all provide the same rights to the
shareholder. NFI does not have own shares. There are
neither restrictions to the transfer of the issued shares in NFI
nor any agreement issued by the shareholder which may
result in restrictions on the transfer of NFI shares.
Instruments traded on a regulated market
NFI issues bonds which are admitted for trading on the
London Stock Exchange or the Luxembourg Stock
Exchange. No other instruments, such as NFI’s shares, are
admitted to trading on any regulated market. Therefore, the
disclosure requirements included in Article 10. paragraph 1.
points c), d), f), h) and i) of Directive 2004/25/EC of the
European Parliament and of the Council of April 21, 2004 on
takeover bids as required by Article 68ter. paragraph 1 letter
d) of Luxembourg modified law of December 19, 2002 are
not applicable.
Control activities
Nestlé Group has established minimum requirements for the
conduct and documentation of IT and manual control
activities to mitigate identified significant financial reporting
risks. NFI establishes and implements internal controls
comprising relevant control activities for significant
processes.
NFI’s management is responsible for ensuring that the
internal control activities are performed and documented
and is required to report on their compliance with Nestlé
Group’s internal control policies to Nestlé Group’s finance
function.
In addition, the Nestlé Group has implemented a
formalized financial reporting process for the budget
process and monthly reporting on actual performance. The
accounting information reported by NFI is reviewed both by
Nestlé Group central treasury and by technical accounting
specialists at Nestlé.
Information and communication
The Nestlé Group has established information and
communication systems to ensure that accounting and
internal control compliance procedures are established,
including a finance manual and internal control
requirements.
All Nestlé Group companies, including NFI, use a
standardized financial reporting system.
Monitoring
The monitoring of the internal control and risk management
systems related to financial reporting is performed at various
levels within the Nestlé Group, such as periodic reviews of
control documentation, controller visits, audits performed by
Nestlé Group Internal Audit and monitoring by the Nestlé
Group’s Audit Committee.
Subsequent events
As at March 19, 2026, there are no subsequent events which
either warrant a modification of the value of its assets and
liabilities or any additional disclosure.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025 5
Future developments
It is expected that NFI’s business activities will remain
unchanged in 2026. NFI will primarily continue to provide
financing to members of the Nestlé Group.
Going concern
NFI’s management assessed its ability to continue as a
going concern and is satisfied that it has the resources to
continue in business for the foreseeable future. Furthermore,
management is not aware of any material uncertainties that
may cast significant doubt on NFI’s ability to continue as a
going concern. Therefore, the financial statements continue
to be prepared on the going concern basis.
As at December 31, 2025, the total current assets amount
to EUR 3 176 million and the total current liabilities amount to
EUR 4 455 million. NFI will be able to meet its current debt
obligations, supported by its short-term and medium-term
debt programs in place, through which NFI can raise funding
using the credit rating of its sole shareholder.
Management does not consider that the negative working
capital position indicates any cash distress scenario.
For the next year, 74% of the debts have a maturity
between 3 years and more than 5 years (71% in 2024).
Based on the capital management the equity is high
enough to cover the risk of default.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 20256
Independent auditor’s report
To the Shareholder of
Nestlé Finance International Ltd. S.A.
40, Avenue Monterey
L-2163 Luxembourg
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Nestlé Finance International Ltd. (the “Company”), which
comprise the Balance sheet as at 31 December 2025, the Income statement and the statement of
comprehensive income, the statement of changes in equity and the cash flows statement of for the year
then ended, and the notes to the financial statements, including material accounting policy information.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of
the Company as at 31 December 2025, and of its financial performance and cash flows for the year then
ended in accordance with IFRS Accounting Standards as adopted by the European Union.
Basis for opinion
We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the
audit profession (“Law of 23 July 2016”) and with International Standards on Auditing (“ISAs”) as adopted
for Luxembourg by the “Commission de Surveillance du Secteur Financier” (“CSSF”). Our
responsibilities under the EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs as adopted for
Luxembourg by the CSSF are further described in the “Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the financial statements” section of our report. We are also independent of the
Company in accordance with the International Code of Ethics for Professional Accountants, including
International Independence Standards, issued by the International Ethics Standards Board for
Accountants (“IESBA Code”) as adopted for Luxembourg by the CSSF together with the ethical
requirements that are relevant to our audit of the financial statements, and have fulfilled our other ethical
responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of the audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Ernst & Young
Société anonyme
35E, Avenue John F. Kennedy
L-1855 Luxembourg
Tel: +352 42 124 1
www.ey.com/luxembourg
B.P. 780
L-2017 Luxembourg
R.C.S. Luxembourg B 47 771
TVA LU 16063074
7Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
Credit risk related to loans and advances to Nestlé Group entities
Risk identified
The Company is a financing entity granting loans and advances to entities within the Nestlé Group
referred to as Nestlé Group entities.
As of 31 December 2025, the current portion of loans and advances granted to Nestlé entities
amounted to KEUR 2 556 152 whilst the non-current portion amounted to KEUR 20 233 734 both
totalling KEUR 22 789 886 and representing 97.3% of the total assets of the company.
As detailed in Note 1 and Note 5 to the financial statements, loans to Nestlé Group entities are
classified as debt instruments measured at amortized cost and subject to impairment.
An expected credit loss (“ECL”) analysis was performed by the Management as at 31 December
2025 based on key judgements and estimates including:
- Completeness and accuracy of data used to calculate ECL.
- Allocation of assets to stage 1 (performing), 2 (non-performing), or 3 (default) using criteria in
accordance with the accounting standard.
- Accuracy and adequacy of the financial statement disclosures.
Given the significance of loans granted to Nestlé entities as well as the importance of the
judgments involved regarding the assessment of the impairment of these financial assets, the
evaluation of the recoverability of loans receivables granted to Nestlé Companies is a key audit
matter.
Our answer
Our audit procedures on impairment and the evaluation of the recoverability of loans receivables
and advances granted to Nestlé Group entities (the “Loans”) included, among others:
- We inspected legal documentation related to the Loans.
- We agreed the input data used in the ECL computation to the carrying value of the Loans
reported in the financial statements and to the related parties’ financial information obtained
from Nestlé Group companies.
- We assessed the methods and assumptions applied by Management in their ECL analysis.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 20258
- We performed an overall assessment of the ECL provision to evaluate its reasonableness
considering the Company’s portfolio, risk profile, credit risk management policies and the
macroeconomic environment.
- We evaluated the adequacy of the Company’s disclosures in respect of the Loans as disclosed
in Notes 5 and 10 of the financial statements.
Other information
The Board of Directors is responsible for the other information. The other information comprises
the information included in the management report and the corporate governance statement but
does not include the financial statements and our report of “réviseur d’entreprises agréé” thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report this fact. We have nothing to report
in this regard.
Responsibilities of the Board of Directors and of those charged with governance for the
financial statements
The Board of Directors is responsible for the preparation and fair presentation of the financial
statements in accordance with IFRS Accounting Standards as adopted by the European Union,
and for such internal control as the Board of Directors determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
The Board of Directors is also responsible for presenting the financial statements in compliance
with the requirements set out in the Delegated Regulation 2019/815 on European Single Electronic
Format, as amended (“ESEF Regulation”).
In preparing the financial statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board of Directors
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to
do so.
9Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
Responsibilities of the “réviseur d’entreprises agréé” for the audit of the financial
statements
The objectives of our audit are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue a report of the “réviseur d’entreprises agréé” that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with the ISAs as
adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and
with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of Board of Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our report of the “réviseur d’entreprises agréé” to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our report of the
“réviseur d’entreprises agréé”. However, future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202510
• Assess whether the financial statements have been prepared, in all material respects, in
compliance with the requirements laid down in the ESEF Regulation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate to them all relationships
and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our report unless law or regulation
precludes public disclosure about the matter.
Report on other legal and regulatory requirements
We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the
Shareholders on 15 April 2025 and the duration of our uninterrupted engagement, including
previous renewals and reappointments, is six years.
The management report is consistent with the financial statements and has been prepared in
accordance with applicable legal requirements.
The corporate governance statement, included in the management report, is the responsibility of
the Board of Directors. The information required by article 68ter paragraph (1) letters c) and d) of
the law of 19 December 2002 on the commercial and companies register and on the accounting
records and annual accounts of undertakings, as amended, is consistent with the financial
statements and has been prepared in accordance with applicable legal requirements.
We have checked the compliance of the financial statements of the Company as at 31 December
2025 with relevant statutory requirements set out in the ESEF Regulation that are applicable to the
financial statements. For the Company, it relates to:
• Financial statements prepared in valid xHTML format;
In our opinion, the financial statements of the Company as at 31 December 2025 identified as
nestle-finance-international-ltd-fullyear-financial-report-2025.xHTML, have been prepared, in all
material respects, in compliance with the requirements laid down in the ESEF Regulation.
11Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
We confirm that the audit opinion is consistent with the additional report to the audit committee or
equivalent.
We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were
not provided and that we remained independent of the Company in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Gabriel de Maigret
Luxembourg, 19 March 2026
13Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
Financial Statements 2025
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202514
Balance sheet
as at December 31, 2025
In thousands of Euro
Notes 2025 2024
Assets
Current assets
Cash and cash equivalents 5 236 701 595 387
Short-term investments 5 314 704 18
Derivative assets 4/5 66 328 70 156
Loans to Nestlé Group companies 5 2 556 152 4 385 350
Other assets 5/6 1 848 1 402
Total current assets 3 175 733 5 052 313
Non-current assets
Derivative assets 4/5 3 351 —
Loans to Nestlé Group companies 5 20 233 734 18 684 368
Deferred tax assets 6 10 243 19 269
Total non-current assets 20 247 328 18 703 637
Total assets 23 423 061 23 755 950
Liabilities
Current liabilities
Derivative liabilities 4/5 — 20
Loans from Nestlé Group companies 5 724 488 395 179
Current financial debt 5/9 3 500 322 4 394 626
Other liabilities 5/6 229 882 182 384
Total current liabilities 4 454 692 4 972 209
Non-current liabilities
Non-current financial debt 5/9 18 872 058 18 709 473
Total non-current liabilities 18 872 058 18 709 473
Total liabilities 23 326 750 23 681 682
Equity
Share capital 7 440 440
Share premium and other premiums 7 102 000 102 000
Hedging reserve 7 5 957 350
Legal reserve 7 44 44
Other reserve 7 4 955 4 955
Accumulated losses (17 085) (33 521)
Total equity attributable to shareholders of the company 96 311 74 268
Total liabilities and equity 23 423 061 23 755 950
The accompanying notes form an integral part of the financial statements.
15Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
Income statement
for the year ended December 31, 2025
In thousands of Euro
Notes 2025 2024
Interest income 544 439 518 412
Interest expense (520 809) (466 311)
Net interest income/(expense) 3 23 630 52 101
Net fee and commission income/(expense) from Nestlé Group companies (7 709) (7 001)
Expected credit loss on financial assets (increase)/decrease (23) (1 012)
Net foreign exchange gain/(loss) 3 9 638 (35)
Operating profit 25 536 44 053
Administration expense (1 541) (1 731)
Profit before tax 23 995 42 322
Taxes 3 (7 559) (9 822)
Profit for the year attributable to shareholders of the company 16 436 32 500
The accompanying notes form an integral part of the financial statements.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202516
Statement of comprehensive income and loss
for the year ended December 31, 2025
In thousands of Euro
2025 2024
Profit for the year recognized in the income statement 16 436 32 500
Adjustments on cost of hedge reserve
Recognized in hedging reserve 7 358 92
Taxes on hedging reserve (1 751) (23)
Items that are or may be reclassified subsequently to the income statement 5 607 69
Other comprehensive income for the year 5 607 69
Comprehensive income for the year attributable to shareholders of the company 22 043 32 569
The accompanying notes form an integral part of the financial statements.
17Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
Statement of changes in equity
for the year ended December 31, 2025
In thousands of Euro
Notes
Share capital
Share premium and
other premiums
Hedging reserve
Legal reserve
Other reserve
Accumulated losses
Total equity attribut-
able to shareholders
of the company
Equity as at January 1, 2024 440 102 000 281 44 4 955 (66 021) 41 699
Profit for the year — — — — — 32 500 32 500
Other comprehensive income for the year — — 69 — — — 69
Total comprehensive income for the year — — 69 — — 32 500 32 569
Equity as at December 31, 2024 440 102 000 350 44 4 955 (33 521) 74 268
Equity as at January 1, 2025 440 102 000 350 44 4 955 (33 521) 74 268
Profit for the year — — — — — 16 436 16 436
Other comprehensive income for the year — — 5 607 — — — 5 607
Total comprehensive income for the year — — 5 607 — — 16 436 22 043
Equity as at December 31, 2025 440 102 000 5 957 44 4 955 (17 085) 96 311
The accompanying notes form an integral part of the financial statements.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202518
Cash flow statement
for the year ended December 31, 2025
In thousands of Euro
Notes 2025 2024
Operating activities
Profit before tax 23 995 42 322
Adjustments for non-cash transactions:
Foreign exchange loss for loans, debt securities and derivatives 3 (9 638) 35
Fair value of debt securities — —
Interest income 3 (544 439) (518 412)
Interest expense 3 520 809 466 311
Cash flow before changes in operating assets and liabilities (9 273) (9 744)
Change in other assets 6 (142) (24)
Change in other liabilities excluding accruals and deferred income 6 227 (274)
Inflow in short term investments — 92
Cash flow used in operations (9 188) (9 950)
Net loans to Nestlé Group companies excluding intra group interest receivable 10 120 414 (3 916 711)
Net loans from Nestlé Group companies excluding intra group interest payable 10 329 309 132 489
Interest received net of withholding tax 551 933 463 438
Interest paid (464 569) (371 674)
Income tax received/(paid) (586) 616
Operating cash flow 527 313 (3 701 793)
Financing activities
Bonds issued 9 2 414 907 2 625 995
Commercial paper issued 9 35 603 108 37 679 904
Bonds repaid 9 (500 000) (1 150 000)
Commercial paper repaid 9 (38 081 843) (35 203 363)
Financing cash flow (563 828) 3 952 536
Effect of the exchange rate changes on cash (7 485) 9 200
Net increase in cash and cash equivalents (44 000) 259 944
Net cash and cash equivalents at the beginning of the year 595 405 335 461
Net cash and cash equivalents at the end of the year 551 405 595 405
Net cash and cash equivalents as per balance sheet 5 236 701 595 387
The accompanying notes form an integral part of the financial statements.
19Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
1. Corporate information
Nestlé Finance International Ltd. (“NFI” or the “Company”) organized under the laws of
Luxembourg, is a wholly-owned subsidiary of Nestlé S.A., incorporated in Switzerland,
which is the holding company of the Nestlé Group of companies (hereinafter, referred to
as the “Nestlé Group” or the “Group”). NFI is established for an unlimited duration.
NFI is principally engaged in the financing of the Nestlé Group companies including by
the sale, exchange, issue, transfer or otherwise, as well as the acquisition by purchase,
subscription or in any other manner, of stock, bonds, debentures, notes, debt instruments
or other securities or any kind of instrument and contracts thereon or relative thereto. NFI
may further grant any financial assistance whatsoever to the members of the Nestlé
Group, in particular, by granting loans, facilities or guarantees in any form and for any term
whatsoever and provide any of them with assistance in any form whatsoever.
The financial statements of NFI for the year ended December 31, 2025, as well as the
audit report, were authorized for issue by the Board of Directors and by the Annual
General Meeting on March 19, 2026.
2. Accounting policies
Accounting convention and accounting standards
The financial statements comply with IFRS Accounting Standards issued by the
International Accounting Standards Board (IASB) as adopted by the European Union and
with the laws and regulations in force in the Grand Duchy of Luxembourg.
They have been prepared on a historical cost basis, except for derivatives financial
instruments and short-term investments that are recorded at fair value.
NFI’s financial year starts on the first day of January and ends on the last day in
December. The balance sheet has been prepared in order of liquidity.
NFI prepared its financial statements on the basis of the going concern convention. NFI
has access to ample liquidity, including short and medium-term capital markets, enjoying
the benefit of issuance with Nestlé S.A.’s AA- rated guarantee. NFI can access the Nestlé
Group liquidity support in place for Nestlé S.A. if there ever be an emergency. Refer to
Note 11 for further details.
Key accounting judgments, estimates and assumptions
The preparation of the financial statements requires NFI’s management to exercise
judgment and to make estimates and assumptions that affect the application of policies,
reported amounts of revenues, expenses, assets and liabilities as well as disclosures.
These estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances. The
estimates and underlying assumptions are reviewed on an ongoing basis. Actual result
may differ from these estimates. Revisions to accounting estimates are recognized in the
period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future
periods.
Those areas that involved a higher degree of judgment or uncertainty are explained
further in the relevant notes, primarily regarding the determination of fair value of financial
instruments (Note 2 paragraph fair value, Note 4 on Derivative assets and liabilities, Note
Notes
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202520
2. Accounting policies
5 on Financial instruments and Note 9 on Debt securities), and the determination of the
expected credit losses (ECL) on loans granted to Nestlé S.A. and its affiliates.
The measurement of impairment losses under IFRS 9 across all categories of financial
assets in scope requires judgements and estimates. These estimates are driven by a
number of factors and changes which can result in different levels of allowance. However,
NFI’s expected credit losses calculation is derived from different output models with
several underlying assumptions regarding the choice of variable inputs and
interdependencies. Elements of the ECL model are considered accounting judgements.
Refer to Note 2 paragraph impairment for further details.
Foreign currencies
The functional currency of NFI is Euro, which is the currency of its primary economic
environment as well as the presentation currency.
Transactions in foreign currencies are recorded at the rate of exchange at the date of
the transaction. Monetary assets and liabilities in foreign currencies are translated at year
end rates. Any resulting exchange differences are taken to the income statement, except
when deferred in other comprehensive income as qualifying cash flow hedges.
Segmental information
The financing activities of NFI are managed as one single business. Therefore, there is one
reporting segment in the financial statements.
The economic purpose of NFI is to issue debt securities, primarily bonds and
commercial papers, to provide financing to Nestlé S.A. and its affiliates. Therefore, NFI’s
income is mainly generated from loans granted to Nestlé Group companies. Loans are
primarily granted to central companies; NFI does not grant loans to operational companies
in order to limit foreign exchange risk. Refer to Note 3 for further details.
Valuation methods, presentations and definitions
Operating income
Net interest income includes the income earned on loans to Nestlé Group companies,
income from short-term deposits and financial expense on borrowings from third parties
and Nestlé Group companies. Net interest income also includes other financial income
and expense from interest rate hedging instruments that are recognized in the income
statement.
Interest income or expense is recognized using the effective interest rate method. The
‘effective interest rate’ is the rate that exactly discounts estimated future cash payments
or receipts through the expected life of the financial instrument to the gross carrying
amount of the financial asset or the amortized cost of the financial liability.
Net fee and commission expenses are composed of the guarantee fee that is payable
to Nestlé S.A. and other fees and expenses from Nestlé Group companies.
Other operating income includes results on foreign currency, other income or expenses
from Nestlé Group companies and income or expenses on financial instruments carried at
fair value to income statement (abbreviated as FVTPL, fair value through profit or loss).
Taxes
NFI is subject to Luxembourg tax laws and regulations. Taxes include current taxes and
deferred taxes on profit as well as actual or potential withholding taxes on current and
expected transfers of income from Nestlé Group companies and tax adjustments relating
to prior financial years. Income tax is recognized in the income statement, except to the
21Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
2. Accounting policies
extent that it relates to items directly taken to equity or other comprehensive income, in
which case it is recognized against equity or other comprehensive income. The amount of
current tax payable or receivable is the best estimate of the tax amount expected to be
paid or received that reflects uncertainty related to income taxes, if any.
Deferred taxes are based on temporary differences that arise when taxation authorities
recognize and measure assets and liabilities with rules that differ from those of the
financial statements. They also arise on temporary differences stemming from tax losses
carried forward.
Deferred taxes are calculated under the liability method at the rates of tax expected to
prevail when the temporary differences reverse, subject to such rates being substantially
enacted at the balance sheet date. Any changes in the tax rate are recognized in the
income statement unless related to items directly recognized against equity or other
comprehensive income. Deferred tax liabilities are recognized on all taxable temporary
differences. Deferred tax assets are recognized on all deductible temporary differences
provided that it is probable that future taxable income will be available.
Financial instruments
Financial assets
Financial assets are initially recognized at fair value plus directly attributable transaction
costs. However, when a financial asset measured at FVTPL is recognized, the transaction
costs are expensed immediately. Subsequent remeasurement of financial assets is
determined by their category, which is revisited at each reporting date.
The settlement date is used for initial recognition and derecognition of the financial
assets, as these transactions are generally under contracts whose terms require delivery
within the time frame established by the regulation or convention in the market place
(regular-way purchase or sale). Financial assets are derecognized when substantially all of
NFI’s rights to cash flows from the financial assets have expired or have been transferred
and NFI has transferred substantially all the risks and rewards of ownership.
NFI classifies its financial assets into the following categories: at amortized cost and at
FVTPL.
Financial assets at amortized cost
This category includes the following classes of financial assets: loans to Nestlé Group
companies, trade and other receivables as well as cash and cash equivalents.
The contractual terms of loans to parent and affiliates give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount
outstanding up to maturity. Cash and cash equivalents include cash at bank and other
short-term highly liquid investments with maturities of three months or less from the
acquisition date.
Subsequent to initial measurement, these assets are carried at amortized cost using
the effective interest rate method and are subject to impairment.
Financial instruments at fair value through profit and loss
NFI’s derivatives mainly consist of currency forwards and interest rate swaps. Derivatives
are mainly used to manage exposures to foreign exchange and interest rates.
Derivative instruments are classified as financial instruments at FVTPL. Derivatives are
initially recognized at fair value at the trade date. They are subsequently remeasured at fair
value on a regular basis and at each reporting date as a minimum. NFI applies hedge
accounting to hedging relationships that meet the qualifying criteria.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202522
2. Accounting policies
Short-term investments which consist of investments in money market fund are classified
at FVTPL.
These investments are mainly related to liquidity management. The net gain or loss is
recorded in interest income or expense.
Financial liabilities at amortized cost
Financial liabilities are initially recognized at fair value, net of transaction costs incurred.
Subsequent to initial measurement, financial liabilities are recognized at amortized cost.
The difference between the initial carrying amount of the financial liabilities and their
redemption value is recognized in the income statement over the contractual term, using
the effective interest rate method. This category includes the following classes of financial
liabilities: loans from Nestlé Group companies, trade and other payables, commercial
papers, bonds and other non-derivative financial liabilities.
Financial liabilities at amortized cost are classified as current or non-current, depending
on whether they are due within 12 months after the balance sheet date or beyond.
Financial liabilities are derecognized (in full or partly) when either NFI is discharged
from its obligation, they expire, they are cancelled or they are replaced by a new liability
with substantially modified terms.
Hedge accounting
NFI designates and documents the use of certain derivatives as hedging instruments
against changes in fair values of recognized assets and liabilities (fair value hedges). The
effectiveness of such hedges is assessed at inception and verified at regular intervals and
at least on a quarterly basis to ensure that an economic relationship exists between the
hedged item and the hedging instrument.
NFI generally excludes from the designation of the hedging relationship the hedging
cost element. Subsequently, this cost element impacts the income statement at the same
time as the underlying hedged item.
Fair value hedges
NFI uses fair value hedges to mitigate foreign currency and interest rate risks of its
recognized assets and liabilities, being financial debt.
Changes in fair values of hedging instruments designated as fair value hedges and the
adjustments for the risks being hedged in the carrying amounts of the underlying
transactions are recognized in the income statement.
The Company presents the costs of hedging separately from the related derivative
instruments. Changes in the fair value of these costs of hedging are recognized in other
comprehensive income and accumulated in hedging cost reserve.
Impairment
NFI assesses whether its financial assets carried at amortized cost are impaired on the
basis of expected credit loss (ECL). The measurement of the expected credit loss of a
financial instrument should reflect an unbiased and probability-weighted amount that is
determined by evaluating a range of possible outcomes, the time value of money and
reasonable and supportable information that is available without undue cost or effort at
the reporting date about past events, current conditions and forecasts of future economic
conditions.
Loans are granted by NFI solely to Nestlé S.A. and its affiliates. Loss given default
(“LGD”) has been assumed to be 30% (2024: 30%), in line with the industry standard for
23Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
2. Accounting policies
Global Corporates. Impairment losses related to loans to Nestlé Group companies are
presented separately in the income statement. The default occurs when a borrower fails
to pay back a debt according to the initial arrangement.
NFI groups its loans into stage 1, stage 2 and stage 3 as defined below:
Stage 1: Credit risk has not increased significantly since initial recognition. This stage is
used for the normal calculation of the ECL with the methodology in place.
Stage 2: Credit risk has increased significantly since initial recognition. Based on the
financial figures of the Group reporting unit, NFI will be informed by Nestlé Group
that a risk is higher to perform a calculation based on the risk of default at the
maturity date.
Stage 3: Financial asset is impaired. NFI will be informed by Nestlé Group that a borrower
is in bankruptcy to recognize an impairment.
Fair value hierarchy of financial instruments
NFI classifies the fair value of its financial instruments in the following hierarchy, based on
the inputs used in their valuation:
i) Level 1 - the fair value of financial instruments quoted in active markets is based on
their quoted closing price at the balance sheet date.
ii) Level 2 - the fair value of financial instruments that are not traded in an active market is
determined by using valuation techniques using observable market data. Such
valuation techniques include discounted cash flow, standard valuation models based
on market parameters for interest rates, yield curves or foreign exchange rates, dealer
quotes for similar instruments and comparable arm’s length transactions. For example,
the fair value of forward exchange contracts, currency swaps, and interest rate swaps
are determined by discounting estimated future cash flow.
iii) Level 3 - the fair value of financial instruments that are measured on the basis of entity
specific valuations using inputs that are not based on observable market data
(unobservable inputs). When the fair value of unquoted instruments cannot be
measured with sufficient reliability, NFI carries such instruments at cost less
impairment, if applicable.
Accruals and deferred income
Accruals and deferred income comprise expenses relating to the current financial year,
which will not be paid until after the balance sheet date and income received in advance,
relating to the following financial year.
Dividend payments
In accordance with Luxembourg law and NFI’s articles of incorporation, dividend
payments are treated as an appropriation of profit in the financial year in which they are
ratified at the Annual General Meeting and subsequently paid.
At the meeting of the Board of Directors of NFI held on March 20, 2025, the Board did
not propose any dividend payment to NFI’s shareholder.
Events occurring after the balance sheet date
The values of assets and liabilities at the balance sheet date are adjusted if there is
evidence that subsequent adjusting events warrant a modification of these values. These
adjustments are made up to the date of approval of these financial statements by NFI’s
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202524
2. Accounting policies
Board of Directors. Other non-adjusting events are disclosed in the Notes to the financial
statements of NFI for the year ended December 31, 2025.
Nestlé S.A. consolidation
NFI is included in the consolidated financial statements of Nestlé S.A. being the company
that is both the smallest and the largest body of undertakings that NFI forms part of.
Copies of Nestlé S.A.’s consolidated financial statements are available at the registered
office of Nestlé S.A., Avenue Nestlé 55, 1800 Vevey, Switzerland.
Changes in accounting standards
In August 2023, the IASB issued Lack of Exchangeability – Amendments to IAS 21, which
requires entities to estimate the spot exchange rate at measurement date when a currency
is not exchangeable into another currency. The Amendments to IAS 21 are effective for
reporting periods beginning on or after January 1, 2025. The initial application of this
amendment did not have a material impact on NFI’s financial statements.
There are no other standards or amendments to IFRS Accounting Standards which
apply for the first time in 2025.
Changes in accounting standards that may affect NFI after December 31, 2025
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial
Statements. This standard sets out requirements for the presentation and disclosure of
information in financial statements. IFRS 18 is effective for reporting periods beginning on
or after January 1, 2027 and will apply retrospectively. NFI is currently evaluating the
impacts this new standard will have on the presentation of the income statement and the
notes to the financial statements. The application of the standard will impact the level of
detail presented in NFI’s income statement as well as the aggreagation of expense items
presented.
Amendments to the Classification and Measurement of Financial Instruments -
Amendments to IFRS 9 and IFRS 7 - have been issued and will become effective on
January 1, 2026. These new amendments are not expected to have a material impact on
the financial statements in the period of initial adoption.
25Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
3. Operating income, expenses and taxes
Net interest income/(expenses)
In thousands of Euro
2025 2024
Interest income from
Cash and cash equivalents, short-term investments 11 640 21 280
Loans to Nestlé Group companies 532 799 497 132
Interest income 544 439 518 412
Interest expense from
Loans from Nestlé Group companies (16 870) (8 913)
Debt securities issued (503 939) (457 398)
Interest expense (520 809) (466 311)
Net interest income/(expenses) 23 630 52 101
Other operating income/(expenses)
In thousands of Euro
2025 2024
Net foreign exchange gain/(loss) 280 788 (63 459)
Net gain/(loss) on hedging instruments (271 150) 63 424
Other operating income/(expenses) 9 638 (35)
The variation of the net foreign exchange gain is mainly due to the fluctuation of the
currencies USD, GBP and JPY against EUR, refer to Note 12 for further details.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202526
3. Operating income, expense and taxes
Taxes
In thousands of Euro
2025 2024
Profit for the year 16 436 32 500
Taxes (7 559) (9 822)
Profit before tax 23 995 42 322
Withholding tax on interest received — 794
Profit before income tax and after withholding tax 23 995 43 116
Taxes
Tax using NFI's domestic tax rate 23,87% (2024: 24,94%) (9 026) (10 576)
Net wealth tax (284) (63)
Withholding tax on interest received — 794
Taxes reclassified to other comprehensive income 1 751 23
Total taxes (7 559) (9 822)
Fees charged by Ernst & Young S.A. (“EY”) and other member firms of the EY network
during the year ended December 31, 2025 were as follows:
In thousands of Euro
2025 2024
Legal annual audit fees (49) (49)
Fees charged by EY network (49) (49)
The Organisation for Economic Co-operation and Development (OECD) initiative to
combat base erosion and profit shifting (BEPS) has led to the development of a number of
measures which countries have already introduced or plan to introduce. These include the
Pillar Two initiative, focused on the introduction of a minimum corporate tax rate, with the
possibility of top-up taxes being introduced in cases where jurisdictions do not have the
minimum tax rate. The OECD framework transposed into Luxembourg law on December
22, 2023 became effective for fiscal year beginning on or after January 1, 2024.
In accordance with the amendments to IAS 12 Income Taxes, NFI has applied the
exception to recognizing and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes.
Based on management’s assessment, no exposure to Pillar Two top-up taxes is
anticipated for NFI.
27Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
4. Derivative assets and liabilities
By type
In thousands of Euro
2025 2024 2025 2024 2025 2024
Contractual or notional
amounts Fair value assets Fair value liabilties
Fair value hedges
Foreign currency and interest rate risk on net
financial debt 1 113 188 2 119 382 69 679 70 156 — 20
Total 1 113 188 2 119 382 69 679 70 156 — 20
Conditional offsets *
Derivative assets and liabilities — (20) — (20)
Balances after conditional offsets 69 679 70 136 — —
* Represent amounts that would be offset in case of default, insolvency or bankruptcy of the counterparties
The majority of hedge relationships are established to ensure a hedge ratio of 1:1.
Impact on the income statement of fair value hedges
Most of the fair value hedges are related to financing activities and are presented in the
other operating income and expenses.
In thousands of Euro
2025 2024
On hedged items 278 180 (63 424)
On hedging instruments (278 180) 63 424
Ineffective results of fair value hedges recorded in the income statement represented an
income of EUR 7 million (2024 : nil) and relate to the cost of hedging.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202528
5. Financial instruments
Financial assets and liabilities
By class and by category
In thousands of Euro
2025 2024
Classes
At amortized cost
(a)
At fair value to
income statement
Total categories
At amortized cost
(a)
At fair value to
income statement
Total categories
Cash at bank and in hand
(a)
4 467 — 4 467 22 467 — 22 467
Time deposit
(a)
232 234 — 232 234 572 920 — 572 920
Short-term investments — 314 704 314 704 — 18 18
Loans and receivables
(a)
22 791 734 — 22 791 734 23 071 120 — 23 071 120
Liquid and non-current financial assets 23 028 435 314 704 23 343 140 23 666 507 18 23 666 525
Derivative assets — 69 679 69 679 — 70 156 70 156
Total financial assets 23 028 435 384 383 23 412 819 23 666 507 70 174 23 736 681
Loans and payables
(a)
(954 370) — (954 370) (577 563) — (577 563)
Financial debt
(b)
(22 372 380) — (22 372 380) (23 104 099) — (23 104 099)
Current and non-current financial liabilities (23 326 750) — (23 326 750) (23 681 662) — (23 681 662)
Derivative liabilities — — — — (20) (20)
Total financial liabilities (23 326 750) — (23 326 750) (23 681 662) (20) (23 681 682)
Net financial position (298 315) 384 383 86 069 (15 155) 70 154 54 999
of which at fair value 384 383 384 383 70 154 70 154
(a) Carrying amount is a reasonable approximation of their fair value based on observable market data
(b) Financial debt includes bonds, commercial papers and bank overdrafts (Note 9)
Fair value hierarchy of financial instruments
In thousands of Euro
2025 2024
Short term investments 314 704 18
Prices quotes in active markets (Level 1) 314 704 18
Derivative assets 69 679 70 156
Derivative liabilities — (20)
Valuation techniques based on observable market data (Level 2) 69 679 70 136
Total financial instruments at fair value 384 383 70 154
There have been no transfers between the different hierarchy levels in 2025 and in 2024.
29Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
5. Financial instruments
There were no financial instruments within the category Level 3 (valuation techniques
based on unobservable input). All financial instruments are within Leval 1 and Level 2
categories.
The fair value of financial instruments quoted in active markets categorized in Level 1 is
based on their quoted closing price at the balance sheet date such as investments in
equity and debt securities. The fair values categorized in Level 2 above were determined
as follows: derivatives are valued based on discounted contractual cash flows using risk
adjusted discount rates and relying on observable market data for interest rates and
foreign exchange rates.
Contractual maturities of financial liabilities and derivatives
The tables below show the liabilities as at December 31, 2025 and December 31, 2024,
categorized by their remaining contractual maturities.
The amounts disclosed in the maturity tables are undiscounted cash flows.
In thousands of Euro 2025
Contractual amount
three months or less
fourth to
twelfth month
in the second year
in the third to
fifth year
beyond the fifth year
Contractual amount
Carrying amount
Other liabilities 229 882 — — — — 229 882 229 882
Loans from Nestlé Group companies 724 488 — — — — 724 488 724 488
Commercial paper 1 254 555 — — — — 1 254 555 1 250 684
Bonds 190 125 2 477 651 2 706 507 5 070 177 14 264 590 24 709 050 21 121 696
Debt securities issued 1 444 680 2 477 651 2 706 507 5 070 177 14 264 590 25 963 605 22 372 380
Amount receivable from currency derivatives 869 480 6 824 6 819 20 495 275 982 1 179 600 1 131 616
Amount payable from currency derivatives (800 915) (8 477) (8 507) (25 420) (288 715) (1 132 034) (1 061 937)
Net derivatives 68 565 (1 653) (1 688) (4 925) (12 733) 47 566 69 679
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202530
5. Financial instruments
In thousands of Euro 2024
Contractual amount
three months or less
fourth to
twelfth month
in the second year
in the third to
fifth year
beyond the fifth year
Contractual amount
Carrying amount
Other liabilities 182 384 — — — — 182 384 182 384
Loans from Nestlé Group companies 395 179 — — — — 395 179 395 179
Commercial paper 3 576 464 333 269 — — — 3 909 733 3 893 430
Bonds 155 375 686 538 2 591 913 5 204 863 13 598 408 22 237 097 19 210 669
Debt securities issued 3 731 839 1 019 807 2 591 913 5 204 863 13 598 408 26 146 830 23 104 099
Amount receivable from currency derivatives 1 813 964 305 417 — — — 2 119 381 2 106 841
Amount payable from currency derivatives (1 748 441) (293 397) — — — (2 041 838) (2 036 705)
Net derivatives 65 523 12 020 — — — 77 543 70 136
31Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
6. Other assets and liabilities
In thousands of Euro
2025 2024
Other financial assets
Intra Nestlé Group other receivables 12 —
Other receivables 1 534 1 402
Prepaid and accrued income 302 —
Total other assets 1 848 1 402
Other financial liabilities
Intra Nestlé Group other payables 1 870 1 879
Other payables 871 635
Accruals and deferred income 227 141 179 870
Total other liabilities 229 882 182 384
Deferred tax assets
In thousands of Euro
2025 2024
Opening balance 19 269 29 845
Increase/(decrease) (9 026) (10 577)
Closing balance 10 243 19 269
7. Share capital, share premium and other reserves
2025 2024
Number of shares of nominal value EUR 2 each 220 000 220 000
In thousands of Euro 440 440
Share capital is set at EUR 440 000 represented by 220 000 shares with a nominal value
of EUR 2 each and is authorized, issued and fully paid. As at December 31, 2025 the share
premium is EUR 102 million (2024: EUR 102 million).
Under Luxembourg law, NFI is allowed to deduct part of the net wealth tax from the
corporate income tax of the same year, provided that a reserve is created corresponding
to five times the net wealth tax deducted and that this reserve is maintained for a period
of five tax years following the year of deduction.
As at December 31, 2025, the net wealth tax reserve amounts to EUR 4 955 thousand
(2024: EUR 4 955 thousand) of which EUR 4 955 thousand is distributable to the
shareholder (2024: EUR 4 955 thousand).
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202532
7. Share capital, share premium and other reserves
The movements in other reserve for the period ended December 31, 2025 were as follows:
In thousands of Euro
2025 2024
Opening balance 4 955 4 955
Subtraction/addition — —
Closing balance 4 955 4 955
Under Luxembourg law, NFI is required to appropriate annually at least 5% of its statutory
net profit to a non-distributable legal reserve until the aggregate reserve reaches 10% of
the subscribed capital. The reserve is fully constituted for EUR 44 thousand.
As at December 31, 2025, the hedging cost reserve net of tax is EUR 5 957 thousand
(2024: EUR 350 thousand) associated with the fair value hedges.
8. Capital management
NFI monitors the capital using the equity at risk methodology. Equity at risk refers to the
share of equity which the lender will need to use in order to cover for potential losses
incurred should the borrower default on its obligations to repay the debt, to meet
obligations against its own lenders and to avoid insolvency. For purpose of determining
the amount of equity which the lender has at risk, the expected loss (EL) methodology
attempts to estimate the loss exposure of the particular lender by assessment of the risk
profile of his debt receivables, and by applying the outcome to the overall amount of debt
granted. To cover fully for the potential losses, the lender should have an equity buffer
equal to at least the amount of its overall exposure.
Therefore, to estimate the appropriate amount of NFI’s equity which is at risk because
of its financial intermediation activity, the following equation is applied:
Equity at risk = EL * Exposure at default
Therefore, the amount of equity NFI is assumed to have at risk as a result of its financial
intermediation activity amounts to EUR 26 633 thousand i.e. 0.12% by EUR 22 789 886
thousand (2024: EUR 26 938 thousand i.e. 0.12% by EUR 23 069 718 thousand).
The amount of EUR 26 633 thousand represents the minimum level of equity that NFI
must keep for accounting purposes to be able to bear the risks flowing from its financial
activity.
As at December 31, 2025, the actual share capital, share premium and accumulated
losses amount to EUR 85 355 thousand and is therefore above the minimum amount
defined above (2024: EUR 68 919 thousand).
33Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
9. Debt securities
Bonds
The outstanding amounts of bonds as at December 31, 2025 and December 31, 2024
were as follows:
In thousands of Euro
2025 2024
Face value
Interest rates Years of
issue/
maturity CommentsNominal Effective
EUR 750.000 1.25% 1.32% 2017–2029 748 098 747 616
EUR 750.000 1.75% 1.83% 2017–2037 743 959 743 506
EUR 1.000.000 1.13% 1.27% 2020–2026 999 646 998 221
EUR 1.000.000 1.50% 1.63% 2020–2030 994 740 993 554
EUR 850.000 0.13% 0.25% 2020–2027 847 961 846 871
EUR 1.000.000 0.38% 0.56% 2020–2032 988 627 986 875
EUR 500.000 0.00% (0.26%) 2020–2025 — 501 196
EUR 500.000 0.00% 0.16% 2020–2033 494 364 493 578
EUR 500.000 0.38% 0.40% 2020–2040 498 508 498 411
EUR 1.250.000 0.00% 0.00% 2021–2026 1 249 992 1 250 042
EUR 750.000 0.25% 0.32% 2021–2029 748 261 747 760
EUR 500.000 0.63% 0.69% 2021–2034 497 413 497 104
EUR 650.000 0.88% 1.01% 2021–2041 637 612 636 874
EUR 600.000 0.88% 0.95% 2022–2027 599 416 598 950
EUR 600.000 1.25% 1.33% 2022–2031 597 602 597 163
EUR 800.000 1.50% 1.63% 2022–2035 791 157 790 277
EUR 500.000 3.00% 3.13% 2022–2028 498 566 497 946
EUR 500.000 3.25% 3.38% 2022–2031 497 014 496 480
EUR 500.000 3.38% 3.49% 2022–2034 495 615 495 200
EUR 850.000 3.50% 3.66% 2023–2027 847 521 846 314
EUR 850.000 3.75% 3.85% 2023–2033 844 594 843 954
EUR 500.000 3.50% 3.56% 2023–2030 498 845 498 584
EUR 500.000 3.75% 3.84% 2023–2035 496 476 496 188
GBP 400.000 5.13% 5.16% 2023–2038 457 197 480 737
EUR 750.000 3.00% 3.08% 2024-2031 747 332 746 852
EUR 750.000 3.25% 3.40% 2024-2037 739 985 739 252
EUR 500.000 2.63% 2.77% 2024-2030 496 771 496 153
EUR 650.000 3.13% 3.20% 2024-2036 645 364 645 011
EUR 500.000 3.50% 3.65% 2025-2045 489 589 —
EUR 600.000 2.88% 3.01% 2025-2032 595 461 —
CNY 2.000.000 2.80% 2.82% 2025-2035 (a) 243 707 —
EUR 600.000 3.00% 3.13% 2025-2033 594 635 —
EUR 500.000 3.50% 3.59% 2025-2038 495 668 —
Total 21 121 696 19 210 669
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202534
9. Debt securities
In thousands of Euro
2025 2024
of which due in twelve months 2 249 638 501 196
of which due in the second year 2 294 898 2 248 263
of which due between three to five years 1 994 925 2 790 081
of which due after five years 14 582 235 13 671 129
Fair value of bonds, based on prices quotes (level 2) 20 010 346 18 153 628
(a) Subject to an interest rate and currency swap that creates a liability at fixed rates in the currency of the issuer.
These bonds are admitted to trading on the London Stock Exchange or the Luxembourg
Stock Exchange. The fair value is defined on prices quoted at year end as published by the
relevant stock exchange.
As at December 31, 2025, one bond is hedged by currency and interest derivatives. The
fair value of these derivatives is shown under derivative assets for EUR 3 351 thousand. As
at December 31, 2024, NFI had no open position hedged by interest rate derivative.
Issue and repayment of bonds
In 2025, several series of bonds were issued for EUR 2 443 434 thousand gross minus the
loan origination cost of EUR 24 374 thousand (2024: EUR 2 650 000 thousand gross minus
the loan origination cost of EUR 24 005 thousand).
One series of bonds was repaid at maturity during the financial year ended December
31, 2025 in the amount of EUR 500 000 thousand (2024: EUR 1 150 000 thousand).
Commercial Paper
The outstanding amounts of commercial paper at December 31, 2025 were as follows:
In thousands of Euro
2025 2024
Commercial papers due within three months 1 250 684 3 565 379
Commercial papers due within nine months — 328 051
The interest rates of the commercial paper are between -0.125% and 4.94% (2024: 2.53%
and 4.94%).
Carrying amount of these instruments is a reasonable approximation of their fair value
based on observable market data.
During the year 2025, NFI issued commercial paper in the amount of EUR 35 603 108
thousand (2024: EUR 37 492 466 thousand) and repaid in the amount of EUR 37 820 277
thousand (2024: EUR 34 988 922 thousand).
10. Transactions with related parties
Financing of the Nestlé Group companies
The principal activity of NFI is the financing of Nestlé S.A. and its affiliates. NFI assesses
the impairment risk based on principles and methodology disclosed in Note 2.
35Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
10. Transactions with related parties
The transactions with Nestlé Group companies are based on arm’s length prices. The
balances of transactions with related parties for the financial year ended December 31,
2025 are presented below:
In thousands of Euro
2025 2024
Assets
Loans to Nestlé Group companies excluding accrued interest 22 684 480 22 956 817
Accrued interest on loans to Nestlé Group companies 105 407 112 901
Total assets 22 789 887 23 069 718
Liabilities
Loans from Nestlé Group companies excluding accrued interest 724 488 395 179
Other payables to Nestlé Group companies 1 870 1 879
Total liabilities 726 358 397 058
Net assets 22 063 529 22 672 660
In thousands of Euro
2025 2024
Interest income on loans to Nestlé Group companies 532 799 497 132
Interest expense on loans from Nestlé Group companies (16 870) (8 913)
Grant, receipt and repayments of loans for the financial year ended December 31, 2025
were as follows:
In thousands of Euro
2025 2024
Loans granted to Nestlé Group companies excluding accrued interest:
Granted to the shareholder of the company 13 563 970 15 026 048
Granted to Nestlé affiliates 2 260 038 3 074 373
Repayments of loans granted to Nestlé Group companies excluding accrued interest:
Repaid by the shareholder of the company (13 294 000) (10 267 000)
Repaid by Nestlé affiliates (2 650 421) (3 916 710)
Net loans granted/(repaid) by Nestlé Group companies (120 414) 3 916 711
Loans granted by Nestlé affiliates excluding accrued interest — 17
Repayments of loans received from Nestlé affiliates excluding accrued interest (329 309) (132 505)
Net loans received/(repaid) to Nestlé Group companies (329 309) (132 489)
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202536
10. Transactions with related parties
The transactions included in the above tables and in Notes 3 and 7 are transactions made
between the parent company, Nestlé S.A. and NFI. These are detailed in the table below:
In thousands of Euro
2025 2024
Payables to Nestlé S.A. 1 865 1 879
Other financial expenses to Nestlé S.A. (7 709) (7 001)
The ECL calculation is related to the loans granted to Nestlé Group companies (see Note
12) for EUR 1 951 thousand (2024: EUR 1 928 thousand).
11. Guarantees
Nestlé S.A. is the guarantor of NFI in respect of all debt securities issued as described
in the Note 9 for both the short and long-term.
The issuance programs and guarantees applicable to NFI are: EUR 25 billion Global
Commercial Paper Program (2024: EUR 25 billion), EUR 2 billion NEU CP French
Commercial Paper (2024: EUR 2 billion) and Debt Issuance Program (DIP). All bonds
issued are guaranteed by Nestlé S.A.
NFI itself has not provided any guarantees in favor of third parties.
12. Risks and uncertainties
NFI is exposed to certain risks and uncertainties that could have a material adverse impact
on its financial condition and operating results.
Capital risk
NFI’s capital management is driven by the impact on the risk on loans granted of the level
of total loans granted.
Management seeks to maintain a prudent balance between the risk and the capital.
Concentrations of risk
The risks are primarily concentrated among Nestlé affiliated companies given the purpose
of the Company with primary exposure in EUR following the transfer of the loans to a
single Nestlé Group entity with the associated credit risk and foreign currency exposure.
The majority of NFI’s assets represents receivables from other Nestlé Group
companies. This situation is reflected in the assessment of risk of default and the
measurement of the allowance for expected credit loss.
Credit risk
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations
resulting in financial loss to the Company.
NFI aims to minimize the credit risk of liquid assets, non-current financial assets and
derivative assets through the application of the Nestlé Group risk management policies.
Credit limits are set based on each counterparty’s size and risk of default. The
37Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
12. Risks and uncertainties
methodology used to set the credit limit considers the counterparty’s balance sheet,
credit ratings, risk ratios and default probabilities. Counterparties are monitored regularly,
taking into consideration the evolution of the above parameters, as well as their share
prices and credit default swaps. As a result of this review, changes on credit limits and
risk allocation are carried out. NFI avoids the concentration of credit risk on its liquid
assets by spreading them over several institutions and sectors.
The maximum exposure to credit risk resulting from financial activities is equal to the
carrying amount of NFI’s financial assets (Note 10 for loans to Nestlé affiliates) in case the
counterparties are unable to fulfil their contractual obligations. The Company is also
exposed to credit risk from derivative instruments, which results from the risk of non-
performance of contractual agreements by the counterparty.
Credit risk of financial assets
As at December 31, 2025 and as at December 31, 2024, the cash and cash equivalents
and the short-term investments are deals with counterparties rated A- and above.
Therefore, the ECL is immaterial.
As at December 31, 2025, NFI has measured the expected credit loss (ECL) on loans to
Nestlé affiliates (Note 2), no other financial assets were impaired.
In thousands of Euro
2025 2024
Grade Nominal ECL calculated Nominal ECL calculated
A- and above 21 679 782 1 951 21 421 504 1 928
Total 21 679 782 1 951 21 421 504 1 928
Banking credit
As part of its financing activities, NFI deals with many banks and financial institutions,
thus the Company is exposed to a risk of loss in the event of non-performance by the
counterparties to financial instruments. While NFI seeks to limit such risk by dealing with
counterparties which have high credit ratings (A- and above), NFI cannot give any
assurance that counterparties will fulfill their obligations, failure of which could materially
affect NFI’s financial position.
Market risk
NFI is exposed to risk from movements in foreign currency exchange rates, interest rates
and market prices that affect its assets, liabilities and future transactions.
Currency fluctuations
NFI is exposed to currency fluctuations, both in terms of its financing activities. While NFI
uses short-term hedging for trading activities, the Company does not believe that it is
appropriate or practicable to hedge long-term translation exposure. However, NFI seeks
mitigation of such translation exposure by relating the currencies of trading cash flow to
those of its debt by using broadly similar interest and currency swap contracts. If NFI
experiences significant currency fluctuations or is unable to use similar interest and
currency swap contracts effectively, then NFI’s financial condition could be adversely
affected.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202538
12. Risks and uncertainties
In thousands of Euro
2025
EUR USD GBP JPY Others
Cash and cash equivalents 329 544 3 040 218 306 142 372
Derivative assets — — — 66 328 3 351
Loans to Nestlé Group
companies 21 287 338 490 105 211 013 801 430 —
Other financial assets 1 848 — — — —
Total financial assets 21 618 730 493 145 429 319 867 900 3 723
Loans from Nestlé Group
companies 618 019 106 469 — — —
Debt securities issued 20 600 209 1 071 266 457 197 — 243 707
Other financial liabilities 229 882 — — — —
Total financial liabilities 21 448 110 1 177 735 457 197 — —
Net position by currency 170 620 (684 590) (27 878) 867 900 3 723
In thousands of Euro
2024
EUR USD GBP JPY Others
Cash and cash equivalents 135 822 20 964 438 074 161 384
Derivative assets — 38 534 — 31 623 —
Loans to Nestlé Group
companies 21 418 329 822 082 17 750 811 552 —
Other financial assets 1 402 — — — —
Total financial assets 21 555 553 881 580 455 824 843 336 384
Derivative liabilities — 20 — — —
Loans from Nestlé Group
companies 395 179 — — — —
Debt securities issued 20 073 199 2 550 164 480 737 — —
Other financial liabilities 182 384 — — — —
Total financial liabilities 20 650 762 2 550 184 480 737 — —
Net position by currency 904 791 (1 668 604) (24 913) 843 336 384
39Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
12. Risks and uncertainties
Euro per
2025 2024
Year ending rates
1 US Dollar USD 0.852 0.960
1 Pound Sterling GBP 1.147 1.206
100 Chinese Yuan Renminbi CNY 12.185 13.158
Interest rate risk
Interest rate risk refers to potential changes of value in financial assets, liabilities or
derivatives in response to fluctuations in interest rates. NFI holds a substantial volume of
interest rate sensitive financial assets, liabilities and derivatives for operational, financing
and investment activities.
Changes in interest rates can have an adverse effect on the financial position and
operating results of NFI. To mitigate the impact of interest rate risk, the Group’s exposure,
including NFI, is assessed on a continuous basis. Interest rate risk is managed and
hedged using derivative financial instruments, such as interest rate swaps, currency
swaps and forward rate agreements. When deemed appropriate, there might be
unhedged positions.
NFI determines the existence of an economic relationship between the hedging
instrument and the hedged item based on the reference interest rates, tenors, repricing
dates and maturities and the notional or par amounts.
Considering the impact of interest derivatives, the proportion of financial debt subject
to fixed interest rates for a period longer than one year represents 100% (2024: 100%).
Value at Risk (“VaR”)
Description of the method
The VaR is a single measure to assess market risk. The VaR estimates the size of losses
given current positions and possible changes in financial markets. NFI uses simulation to
calculate VaR based on the historic data for a period of 261 days.
The VaR calculation is based on a 95% confidence level and, accordingly, does not
consider losses that might occur beyond this level of confidence. The VaR is calculated
based on unhedged exposures outstanding at the close of business and does not
necessarily reflect intra-day exposures.
Objective of the method
NFI uses the described VaR analysis to estimate the potential one-day loss in the fair value
of its financial instruments. NFI cannot predict the actual future movements in market
rates, therefore, the below VaR numbers neither represent actual losses nor consider the
effects of favorable movements in underlying variables. Accordingly, these VaR numbers
may only be considered indicative of future movements to the extent the historic market
patterns repeat in the future.
VaR figures
The VaR computation includes NFI’s financial assets and liabilities that are subject to
foreign currency and interest rate risk.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202540
12. Risks and uncertainties
The estimated potential one-day loss from NFI’s foreign currency and interest rate risk
sensitive instruments, as calculated using the above described historic VaR model, is as
follows:
In thousands of Euro
2025 2024
Foreign currency 4 093 4 472
Interest rate — 151
Foreign currency and interest rate combined 4 093 4 513
Liquidity risk
Liquidity risk is the risk that a company may encounter difficulties in meeting its
obligations associated with financial liabilities that are settled by delivering cash or other
financial assets.
NFI has access to ample liquidity, including short-term and medium-term capital
markets, through the Nestlé Group’s Debt Issuance Program (DIP), Global Commercial
Paper Program of up to a combined aggregate amount of EUR 25 billion equivalent and
NEU CP French Commercial Paper of up to a combined aggregate amount of EUR 2 billion
equivalent, enjoying the benefit of issuance with Nestlé S.A.’s AA- rated guarantee. All
international recognized agencies rating the credit of Nestlé S.A. and its affiliates,
including NFI, may qualify or alter such rating at any time. Downgrades or placement on
review for possible downgrades could harm the Nestlé Group’s, including NFI’s, ability to
obtain financing or increase its financing costs and could have a material adverse effect on
the price of debt instruments issued by NFI and thereby significantly affect NFI’s financial
position. Therefore, NFI depends on broad access to these capital markets and investors.
Changes in demand for term debt instruments on capital markets could limit the ability of
NFI to fund other members of the Nestlé Group.
NFI depends on the willingness of banks to provide credit lines or loans. Due to
structural changes in the banking business, the willingness of banks to provide credit
lines and loans has declined over the past years. In order to reduce and minimize the
dependence on banks, NFI has taken measures to maintain its access to the capital
markets. For information on contractual maturities of financial liabilities and derivatives,
refer to Note 5 Financial instruments.
Risk of an increase in cost of capital
NFI’s capital management is driven by the impact on shareholders of the level of total
capital employed. NFI’s policy aims to maintain a sound capital base to support the
continued development of its business. However, increases in the cost of borrowing could
negatively affect the operating results of NFI. Increases in cost of borrowing could arise
from changes in demand for term debt instruments in the capital markets, the removal of
the unconditional and irrevocable guarantee of Nestlé S.A. and a decreasing willingness
of banks to provide credit lines and loans.
Treasury operations
During its business, the Nestlé Group, including NFI, has substantial assets under
management. Although the Nestlé Group has implemented risk management methods,
including approved guidelines and financial policies to mitigate and control such risks,
because of holding such assets, it is exposed to credit risk, interest rate risk, foreign
exchange risk and credit spreads. Returns on such assets may also be affected by limited
41Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 2025
12. Risks and uncertainties
exposure to yield enhancing absolute return funds. In addition, adverse changes in the
credit quality of counterparties or a general deterioration in economic conditions or arising
from systemic risks in the financial systems could affect the value of those assets and
thereby materially affect NFI’s financial position.
13. Directors
The Board of Directors of NFI comprises three Directors. The Directors do not receive any
remuneration for their mandate.
14. Staff
NFI did not employ any staff as at December 31, 2025 (2024: six full-time employees). The
activities of the Company were carried out by the directors.
During the year, certain administrative services, such as treasury and accounting
services, were provided to NFI by other entities within the Group.
15. Events after the balance sheet date
As at March 19, 2026, there are no subsequent events which either warrant a modification
of the value of its assets and liabilities or any additional disclosure.
Nestlé Finance International Ltd. – Annual Financial Report for the year ended as at December 31, 202542
Martin Huber, Director, Bruno Chazard, Director, Umberto
Cirri, Director confirm that to the best of their knowledge:
(a) the financial statements of NFI for the annual period
ended December 31, 2025, which have been prepared in
accordance with IFRS as adopted by the European Union
as well as with the laws and regulations in force in the
Grand-Duchy of Luxembourg, give a true and fair view of
the assets, liabilities, financial position and profit or loss
of NFI; and
(b) the management report includes a fair review of the
development and performance of the business and the
position of NFI, together with a description of the
principal risks and uncertainties that it faces.
March 19, 2026
Responsibility Statement