Investing.com — Shares in jumped 6% on Thursday after the company reported first-quarter organic sales ahead of analyst expectations and maintained its full-year outlook.
Organic sales rose 3.5% in the three months ended March, beating the 2.4% analyst consensus. The result came despite a roughly 90-basis-point drag from an infant formula recall during the quarter, implying an underlying growth rate closer to 4.5%, according to Jefferies.
“4.5% implied underlying growth rate will be well-received by the market, we think,” Jefferies analyst David Hayes said.
Total reported sales for the quarter fell 5.8% to 21.3 billion Swiss francs, in line with estimates, reflecting currency headwinds.
Coffee was a standout, with volume and mix improving meaningfully as the anniversary of prior price hikes appeared to reinvigorate demand. Pet food also beat expectations. The only soft spot was food and snacks.
Nestle said its emerging market organic sales grew 4.6%, with CEO Philipp Navratil noting the company had seen “very little impact” so far on its global business from the Middle East war between the U.S. and Iran.
He added that consumer behaviour was shifting in response to rising fuel prices, with shoppers walking rather than driving to stores and eating at home rather than in restaurants, particularly in emerging markets.
Hayes described the print as “a strong start to 2026.”
“The implied underlying growth (ex 90bp headwind from infant formula recall) of c4.5% is encouraging; with early evidence of ’growth platform’ strategy working,” he said.
Nestle held its full-year outlook, targeting organic growth of 3% to 4% and a higher underlying trading operating profit margin than last year.