Nestlé raised its full-year guidance for organic sales growth today after its latest results beat expectations thanks to strong demand for its pet and convenience food brands, as well as coffee and health-related products.
The world’s biggest food group reported organic sales growth of 3.5% in the first nine months of the year, above analysts’ expectations of 2.8%. Nestlé stated that growth was based on sustained momentum in the Americas and continued robust sales development in EMENA (Europe, Middle East and North Africa).
Products such as Maggi noodles, DiGiorno frozen pizza, and Purina pet food have performed particularly well with Nestlé suggesting consumers were still turning to “trusted brands” during the pandemic. There was also strong demand for dietary supplements made by the company’s growing health science division.
Third-quarter organic sales growth was 4.9% with full-year growth now expected to come in at around 3%. Whilst below last year’s 3.7% increase, Nestlé highlighted that sales were accelerating in areas such as coffee, baking products and prepared foods. Confectionery and water reported a sales decrease due to their high exposure to out-of-home channels, but there was said to be some improvement in the third quarter.
Chief Executive Mark Schneider said: “Nestlé has remained resilient in a difficult and volatile environment. Our people have acted in a responsible and prompt manner to mitigate the impact of the global pandemic and have adapted quickly to evolving consumer needs.”
The Swiss group has weathered the pandemic better than some peers as its focus on high-growth categories helped offset a slump in food sales to restaurants and cafes. Earlier this week, Danone announced an extensive review of its business that could lead to disposals after its like-for-like sales fell 2.5% in the third quarter.
