Nestlé has reported 7.6% organic sales growth in the first quarter, driven by a 5.2% increase in prices, continued momentum in sales and further recovery in out-of-home channels.
For its first quarter, the Swiss food giant posted total sales of CHF 22.2 billion ($23.4 billion approx.), compared to last year’s CHF 21.09 billion.
Coffee, alongside the company’s pet care brands, was once again the best performing category, thanks to continued demand for Nescafé, Starbucks and Nespresso products. Meanwhile, Nestlé’s dairy business saw mid-single-digit growth, with sales developments in coffee creamers, ice cream, and premium and fortified milks.
Nestlé’s Nespresso unit grew organically by 3.3%, fuelled by the continued momentum of its Vertuo system and innovation. In March, Nestlé announced plans to invest $675m in a 630,000-square-foot site to produce Nestlé’s creamers, including the Coffee-Mate, Coffee-Mate Natural Bliss and Starbucks brands.
Sales in North America decreased by 1.5% to CHF 5.8 billion ($6.1 billion approx.), representing a 9.9% organic growth led by pet food, coffee and creamers.
In Europe, organic growth reached 6.9% with continued market share gains, particularly in pet food, coffee and plant-based food. Sales in Europe increased by 2.2% to CHF 4.6 billion ($4.8 billion approx.).
In the AOA region, sales grew organically by 6%, seeing market gains in the culinary, coffee and ice cream categories. Sales in the AOA increased by 3% to CHF 4.6 billion.
Nestlé’s CEO, Mark Schneider, said: “In these first months of the year, the war in Ukraine has caused unspeakable human suffering. We remain focused on supporting our colleagues there and providing humanitarian relief while standing with the international community in the call for peace.”
He continued: “Amid this challenging environment, we delivered strong organic sales growth with resilient RIG. We stepped up pricing in a responsible manner and saw sustained consumer demand. Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year.”
Nestlé confirmed its 2022 full-year outlook, expecting organically sales growth of around 5%.