International Companies
Nestle Q1 sales beat forecasts despite baby formula hit
By Abigail Townsend
Date: Thursday 23 Apr 2026
(Sharecast News) - First-quarter revenues at Swiss food giant Nestle beat expectations on Thursday, as strong coffee and confectionary sales helped offset a baby formula recall.
The owner of KitKat, Nescafe, Purina and SMA, among many others, posted total reported sales of CHF21.3bn (£20.09bn) in the three months to March end, down 5.7%. However, organic growth was 3.5%, with real internal growth (RIG) - Nestle's term for volume growth - of 1.2% and average price increases of 2.3%.
Consensus had been for organic growth of 2.4%.
The uplift included around a 90 basis point hit from the infant formula recall, with sales falling 3.9% in Nestle's nutrition unit. It emerged earlier this year that batches of formula made by Nestle and French peer Danone had been contaminated with the toxin cereulide, leading to the global recall.
However, following strong trading from Nescafe, the coffee division saw a 9.3% spike in organic growth, while an improving performance in confectionary helped lift food and snack sales by 4.2%.
The Zurich-listed stock had put on 6% by 1100 BST.
Philipp Navratil, chief executive, said: "Results were strong across most zones and categories, particularly in coffee and food and snacks. Growth in emerging markets stood out. In Europe and the US our performance was robust as our teams successfully navigated the customer and consumer environments."
Looking to the full year, Nestle said that following a good first quarter, "but reflecting increased geopolitical uncertainty and macroeconomic risks", it was maintaining its guidance for organic growth in the region of 3% to 4%.
Nestle noted that its factories in the Middle East - which accounts for around 3% of group sales - were continuing to operate. But it acknowledged: "The broader effects on the group, including from impacts on commodity prices, distribution costs and consumer confidence, remain uncertain." War in the region has caused global energy prices to soar.
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