Bern, April 25, 2024 – Swiss food giant Nestle reported a decline in sales of nearly 6% in the first quarter of this year and missed expectations for organic sales growth. The decline was largely due to unfavorable currency effects, as well as price increases and lower sales volumes, particularly in North America.
Key takeaways:
- Sales: CHF 22.1 billion
- Down 5.9% from Q1 2023
- Organic sales: Up 1.4%, missed expectations (2.9%)
- Key drivers: Unfavorable currencies, price increases, lower sales volumes in North America
- Growth in Europe and emerging markets
- Nestle maintains full-year guidance for 4% organic sales growth
Details:
Nestle posted sales of CHF 22.1 billion in the first quarter, a decline of 5.9% from the same period last year. Excluding currency effects and acquisitions/divestitures, organic sales rose 1.4%, but fell short of analysts’ expectations.
The results were particularly impacted by unfavorable currency effects and a weak North American market. While organic sales in Europe and emerging markets grew by 4.4% and 3.3%, respectively, they fell by 2.5% in North America.
Despite the weak start to the year, Nestle reiterated its full-year guidance for 4% organic sales growth. The company expects the situation to improve in the coming quarters.
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