Nestlé Confirms 2026 Outlook Despite Q1 Total Sales Decline

Nestlé SA reported total group sales of 21.32 billion Swiss francs for the first quarter, representing a 5.7% decrease compared to the 22.60 billion francs recorded in the same period last year. Despite the decline in nominal sales, the company reported organic growth of 3.5% and real internal growth (RIG) of 1.2%. The sales slump was felt across all geographic zones. The most significant drops occurred in Asia, Oceania, and Africa, where sales fell 8.7% to 5.22 billion francs, and the Americas, which saw a 6.7% decline to 9.11 billion francs. Europe experienced a more modest decrease of 0.8%, with sales totaling 4.62 billion francs. Coffee emerged as the primary catalyst for growth. The company also noted a strong performance in emerging markets, where organic growth reached 4.6%, climbing to 6.8% when excluding China. In contrast, developed markets saw organic growth of 2.8%, driven by a combination of 1.2% RIG and 1.6% pricing. Operational headwinds included a recall of infant formula products, which negatively impacted organic growth RIG by approximately 90 basis points during the quarter. Management confirmed that product availability has since returned to normal levels. CEO Philipp Navratil expressed confidence in the company's strategy, citing robust performance in Food & Snacks. Nestlé reaffirmed its fiscal 2026 outlook, expecting organic growth between 3% and 4%, with RIG expected to accelerate over 2025 levels despite ongoing geopolitical and macroeconomic uncertainties.