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Nestlé reported better-than-expected first-quarter sales growth, driven by real volume expansion and disciplined pricing, while reaffirming its full-year outlook for organic growth and margin improvement.
In the three months ended March, Nestlé’s organic sales rose 3.5%, excluding the impact of currency fluctuations and acquisitions. Analysts had expected 2.4%.
The company said the result reflected steady consumer demand across key categories, particularly coffee, food, and snacks, supported by both volume growth and stable pricing.
Real internal growth, reflecting sales volumes, increased 1.2% during the quarter. Analysts had expected a 0.1% rise.
Nestlé also implemented price increases of 2.3% during the period, matching analyst expectations of 2.3%. The combination of volume and pricing helped support the organic sales outcome.
Products including Nescafé coffee and pet food offerings were among contributors to growth, alongside resilience in food and snack categories.
Despite strong organic growth, Nestlé reported a decline in total sales. Sales fell 5.8% to 21.3 billion Swiss francs (US$27.12 billion), in line with analyst estimates.
The company attributed the reported decline to currency movements and other external factors rather than underlying weakness in the business.
Nestlé maintained its full-year guidance, projecting organic sales growth of 3% to 4%.
The company also expects its underlying trading operating profit margin to improve compared with last year.
The mix of volume-led growth and disciplined pricing suggests demand resilience rather than reliance on price pass-through alone.
However, a key risk highlighted in the coverage is that organic growth could stall if consumers cut back and volumes turn negative, potentially forcing Nestlé to rely more on weaker pricing to meet targets.
According to a Reuters report, a source close to Nestlé said CEO Philipp Navratil plans to sharpen focus on four categories: coffee, petcare, nutrition and health, and food and snacking.
The source described the strategy as a stronger emphasis on these areas rather than a major overhaul, aiming to boost sales volumes and strengthen performance in higher-growth segments.
This targeted focus aligns with the quarter’s reported drivers, where growth was largely supported by coffee, food, and snacks.
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