Shares in Nestle rose this morning after the Swiss food giant posted a fall in first-quarter revenues – but its organic sales growth beat analyst forecasts.
Nestle recorded a 9.3% slide in sales for the first three months of the year to CHF20.26bn (US$22.68bn). The company pointed to the strength of the Swiss franc and the impact of the sale of the company’s stake in eyecare business Alcon.
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However, on an organic basis, sales were up 6.4%, beating a consensus analyst forecast that Nestle’s organic sales would rise 5.7%.
Nestle’s “real internal growth” – a company measure that excludes pricing, currency fluctuations and the impact of M&A – was 4.9%. Analysts had forecast growth of 3.6%.
On an organic basis, Nestle sales were up 2.3% in Europe, rose 3.7% in the Americas and climbed 11.8% in the company’s third geographic region of Asia, Oceania and Africa.
Nestle CEO Paul Bulcke described the company’s first quarter as a “strong start” to the year and said the business had “achieved growth” in all its categories.
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By GlobalDataShares in Nestle had risen 1.13% to CHF53.85 at 10:17 CET.
