Nestlé reports "solid" growth for first quarter

24 Apr 2017

Nestlé has reported that sales in first quarter increased by 0.4% on a reported basis to CHF 21.0 billion. Organic growth was solid, the company said, at 2.3%

Nestlé has reported that sales in the preceding three months increased by 0.4% on a reported basis to CHF 21.0 billion. Organic growth was solid, the company said, at 2.3%, with 1.3% of real internal growth (RIG) and pricing of 1.0%. Sales were reduced by foreign exchange (-0.4%) and net divestments (-1.5%). Organic growth was 0.8% for developed markets and 4.3% for emerging markets. Full-year guidance for 2017 was confirmed.

“Organic growth of 2.3% this quarter is within our full-year guidance range,” said Mark Schneider, Nestlé CEO. “The leap year comparison and other seasonal effects made the start of this year particularly challenging. We were encouraged by the growth in Asia and the resilience of consumer spending in Europe. Consumer demand in the Americas remained soft. Our pricing improved moderately. We confirm our 2017 guidance and have made good progress with our growth and efficiency projects to position our company for enhanced value creation.”

Nestlé Nutrition saw 1.1% organic growth. In China, organic growth recovered as category momentum gradually improved. Price increases in the US, Brazil and Mexico weighed on RIG in these markets. Organic growth in South-East Asia was strong.