The logo of food producer Nestle is a pictured on a package of ‘Smarties’ in Wiesbaden. Fredrik von Erichsen/dpa
Swiss food giant Nestlé reported a 5.7% decline in first-quarter sales on Thursday, reflecting weaker performance across all geographic zones as well as in Nespresso and its Waters & Premium Beverages unit.
Group sales fell to CHF 21.32 billion ($27.16 billion) from CHF 22.6 billion a year earlier.
Organic growth was 3.5%, supported by pricing and modest volume gains, with real internal growth (RIG) at 1.2%.
Sales declined across all regions. Zone Americas revenue fell 6.7% to CHF 9.11 billion, while Zone Asia, Oceania and Africa dropped 8.7% to CHF 5.22 billion. Zone Europe sales edged down 0.8% to CHF 4.62 billion.
Despite the decline in reported sales, all zones and globally managed businesses delivered positive organic growth, with coffee emerging as the primary growth driver.
RIG was positive across all regions and categories, except for infant formula within the Nutrition segment.
In developed markets, organic growth was 2.8%, including 1.2% RIG and 1.6% pricing.
Emerging markets posted organic growth of 4.6%, with RIG of 1.2% and pricing of 3.4%. Excluding China, emerging markets grew 6.8%, driven by 2.9% RIG and 3.9% pricing.
The company said an infant formula recall reduced first-quarter organic growth by about 90 basis points, mainly affecting RIG. Product availability has since normalized.
Nestlé reiterated its fiscal 2026 outlook, continuing to expect organic growth of around 3% to 4%, with RIG accelerating versus 2025.
The outlook reflects increased geopolitical uncertainty and macroeconomic risks.