Nestle 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%. Nestle 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 Nestle 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%. '
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, Nestle 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. 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. We can only hope that this is a trend that will be replicated across the industry in the weeks and months to come.