Nestle says confectionery and coffee shine as quarterly sales increase

(Alliance News) - Nestle SA on Thursday backed its full-year outlook after a modest rise in first-quarter sales in what it called a "dynamic" environment.

The Vevey, Switzerland-based food and beverage company owns brands including Kit Kat, Nescafe, Aero and Carnation.

Sales rose 2.3% to CHF22.60 billion in the first quarter of 2025 from CHF22.09 billion a year prior, and in line with the firm's expectations.

Organic sales grew 2.8%, reflecting price increases of 2.1% and real internal growth of 0.7%, Nestle said.

"Growth was broad-based across markets and categories, with improving market share trends across many businesses, particularly our billionaire brands," observed Chief Executive Laurent Freixe.

Nestle said it had raised prices to address input cost inflation in coffee and cocoa, with "limited" customer disruption.

The strongest organic growth was delivered in confectionery, up 8.9%, and coffee, up 5.1%, led by pricing, with double-digit increases in some markets.

PetCare organic growth of 1.6% was RIG-led and reflects some market softness, especially in the US, but with continued market share gains in most markets, the company said.

Nestle Health Science organic growth slowed to 4.2%, reflecting mixed performance, the firm added.

Nestle reiterated 2025 guidance, but Freixe said the indirect impacts of tariffs "on consumers and customers, as well as currencies and commodity prices – remain unclear at this stage".

The situation continues to "be dynamic, with heightened risks and uncertainty," the Nestle CEO added.

For 2025, Nestle expects organic sales growth to improve compared to 2024, strengthening over the year. The underlying trading operating profit margin is expected to be at or above 16.0% for the year.

In addition, Nestle said its 'fuel for growth' cost savings program is on track to deliver CHF0.7 billion incremental cost savings in 2025.

Shares in Nestle were 0.5% lower at CHF87.00 in Zurich on Thursday.

By Jeremy Cutler, Alliance News reporter

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