LONDON, April 23 - Nestle posted markedly stronger organic sales growth in the first quarter as increased consumer buying of its coffee and pet food products helped lift volumes for the worlds largest packaged food company.
The group, which manufactures brands including Maggi seasonings, Nescafe coffee and KitKat chocolate wafer bars, kept its full-year guidance unchanged. Management continues to target organic sales growth between 3% and 4% for the year and expects a higher underlying trading operating profit margin than in the prior year.
On an organic basis - which removes the effects of currency movements and acquisitions - sales climbed 3.5% in the three months ended March. That outpaced the average analyst forecast of 2.4%.
At the same time, total reported sales declined by 5.8% to 21.3 billion Swiss francs ($27.12 billion), a figure that met analyst expectations.
A source close to the company told Reuters in February that new chief executive Philipp Navratil plans to concentrate more sharply on four product areas - coffee, petcare, nutrition and health, and food and snacking - as a way to boost sales volumes this year. The source said this approach reflects a stronger emphasis on those areas rather than a sweeping restructuring of the business.
Nestles average price increases in the first quarter were 2.3%, matching the mean analyst estimate of 2.3%. Measures of real internal growth - which capture changes in sales volumes - rose 1.2% in the period, ahead of expectations for a 0.1% increase. Management attributed the volume gains to coffee, food and snacks.
Separately, a commercial product evaluation referenced in the companys coverage notes that ProPicks AI reviews NESN alongside thousands of other companies monthly using more than 100 financial metrics. That service said it applies automated analysis to generate stock ideas, assessing fundamentals, momentum and valuation without bias, and cited past winners it has highlighted, including Super Micro Computer (+185%) and AppLovin (+157%). The offering invites investors to check whether NESN appears in any ProPicks strategies or whether alternatives in the same space may be preferred.
The first-quarter results thus show a mix of outcomes: stronger-than-expected organic growth and volume gains in core categories, alongside a decline in reported sales due to currency and acquisition effects. Managements announced strategic emphasis on four product areas and the alignment of pricing and volume trends will be watched closely as the year progresses.