ZURICH – Swiss food group Nestle reported today better-than-expected sales in the first three months of the year, helped by price increases to offset inflation and demand for its staple products.
Nestle, which makes Nespresso capsules, Maggi bouillons, KitKat chocolate bars, and Purina pet food, reported an increase in sales of 5.6% to 23.5 billion Swiss francs (RM117.7 billion).
Organic sales – excluding currency movements or mergers or acquisitions – rose 9.3%, higher than analyst expectations of 7.3%.
The group’s pet food was the biggest contributor to organic growth, Nestle said, alongside double-digit growth in confectionary products including KitKat bars.
Chief executive Mark Schneider said the group had “delivered strong organic growth in the first quarter, as our teams worked diligently to protect volume and ensure resilient mix.”
“Portfolio optimization efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation,” he said.
Nestle is targeting a full-year sales increase of between 6 to 8%.
The group also said today it was setting up a joint venture for its frozen pizza business in Europe with private equity firm PAI Partners, subject to the approval of regulators. Nestle will retain a minority stake in the joint venture. – AFP, April 25, 2023
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