Nestlé today reported sales for the nine months through September that missed analyst expectations, but indicated it would likely meet a closely watched sales target it had previously cautioned it might miss.
Nestlé said strong sales of pet food and chocolates helped drive its performance. The performance was patchy with sales in Europe growing at less than 1%, while emerging markets showed signs of picking up, though not at the double-digit pace they grew at a year ago.
Like Anglo-Dutch rival Unilever NV, Danone SA and other food makers, Nestlé has struggled with slowing growth in Europe, where government austerity programs have weighed on consumer confidence, and the Americas.
Chief Executive Paul Bulcke said the environment had begun to change and volume growth for the maker of KitKat chocolate bars and Nescafe instant coffee had improved in some parts of the world. In particular, “Asia and Africa have picked up speed,” Mr. Bulcke said.
In emerging markets, which account for about 45% of group sales, sales were up by 8.8%, against 8.2% growth in the first half.
