LONDON\u00a0\u2014 Nestl\u00e9 could benefit from people dining at home rather than eating out as conflict in the Middle East drives inflation, it said on Thursday, but its results statement also cautioned higher energy and freight would add to distribution costs.<\/p>\n
Nestl\u00e9, the world\u2019s biggest packaged food company which makes Maggi seasonings, Nescaf\u00e9 coffee and KitKat chocolate wafer bars, said it had seen \u201cvery little impact\u201d so far on its global business from the war that began at the end of\u00a0February\u00a0with United States-Israeli air strikes on Iran.<\/p>\n
It maintained its full-year outlook of organic growth between 3 percent and 4 percent, and\u00a0a higher underlying trading operating profit margin than last year.<\/p>\n
But CEO Philipp Navratil said consumer behavior was changing in response to a surge in fuel prices. Shoppers are walking rather than driving to stores, he said, and\u00a0eating at home rather than in restaurants, especially in emerging markets.<\/p>\n
\u201cWe are very well set up because we\u2019re very well distributed in those countries,\u201d Navratil said. \u201cOur portfolio is very well set up for people being more at home \u2014 we\u2019ve done very well in emerging markets.\u201d<\/p>\n
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By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service<\/a> and Privacy Policy<\/a>.<\/p>\n Organic sales growth increases<\/p>\n Nestl\u00e9 reported on Thursday that first-quarter emerging market organic sales growth increased by 4.6 percent.<\/p>\n The Swiss company posted better-than-expected overall first-quarter sales growth as more people bought its coffee and pet food.<\/p>\n Organic sales, which exclude the impact of currency movements and acquisitions, rose 3.5 percent in the three months ended March. Analysts had on average expected organic sales growth of 2.4 percent.<\/p>\n The company said its organic growth had taken a roughly 90-basis-point hit due to a recall of infant formula products during the quarter, adding that product availability was now back to normal.<\/p>\n Total reported sales decreased by 5.8 percent to 21.3 billion Swiss francs ($27.12 billion) meeting analyst estimates.<\/p>\n A source close to Nestl\u00e9 told Reuters in\u00a0February\u00a0that Navratil is planning a sharper focus on four product categories \u2014 coffee, pet care, nutrition and health, and\u00a0food and snacking \u2014 to try to increase sales volumes this year.<\/p>\n The strategy reflects a stronger emphasis on the four areas rather than a major overhaul of the business, the source added.<\/p>\n Nestl\u00e9\u2019s 2.3-percent first-quarter price increases met the average analyst estimate of 2.3 percent. Real internal growth \u2014 or sales volumes \u2014 rose 1.2 percent versus expectations of a 0.1-percent increase, driven by coffee, food and snacks.<\/p>\n \u201cNestl\u00e9 is showing early signs of reigniting volume growth,\u201d Vontobel analyst Jean-Philippe Bertschy said. \u201cThis is the kind of reassurance investors were waiting for, and it corroborates management\u2019s relatively upbeat tone following the full-year 2025 results.\u201d<\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"LONDON\u00a0\u2014 Nestl\u00e9 could benefit from people dining at home rather than eating out as conflict in the Middle…\n","protected":false},"author":2,"featured_media":54462,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[126],"tags":[12793,30556,9366,3694,15189,3188,13232,25784,199,2439,30555,4140],"class_list":["post-54461","post","type-post","status-publish","format-standard","has-post-thumbnail","category-nestle","tag-as","tag-far","tag-full-year","tag-has","tag-impact","tag-iran","tag-limited","tag-maintains","tag-nestle","tag-outlook","tag-so","tag-war"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116455027687452196","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/54461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=54461"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/54461\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/54462"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=54461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=54461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=54461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}