Nestlé has reported better-than-expected nine-month sales, raising its full-year guidance as the world's largest packaged food company successfully passed on price increases to customers.
The maker of KitKat chocolate bars and Nescafé instant coffee posted sales of CHF 69.1 billion, beating the CHF 68.9 billion forecast in a company gathered consensus of 23 analysts.
Organic growth, which cuts out the impact of currency movements and acquisitions, was 8.5% in the nine months to the end of September, better than the 8.3% increase that was forecast, and the company's highest organic growth since 2008.
Most of the organic growth was driven by extra pricing - which accounted for 7.5 percentage points of the increase, while volumes increased by 1 percentage point.
Full-Year Outlook
As a result Nestlé raised its full year outlook, saying it now expected organic growth of 'around 8%' for 2022, up from its previous expectation of a 7% to 8% increase.
The Swiss company confirmed its target for a trading operating profit margin of around 17%.
'Affordable And Accessible'
"We delivered strong organic growth as we continued to adjust prices responsibly to reflect inflation," chief executive Mark Schneider said in a statement. "The challenging economic environment is a concern for many people and is impacting their purchasing power. That's why we aim to keep products affordable and accessible while considering the interests of all our stakeholders."
Schneider added that the group is continuing to invest in R&D, marketing and sustainability initiatives, recently unveiling a new ESG programme – its Nescafé Plan 2030.
"We remain confident in the strength of our brands, operational execution and underlying category dynamics which position us well for future growth," he added.
News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
