Nestlé Global, positive sales in the first 3 months of 2022
"We expect organic turnover growth of around 5% by the end of the year"
Nestlé has disclosed its sales performance during the first three months of 2022. Mark Schneider, CEO of the Group, commented: "In these first months of the year, the war in Ukraine has caused untold human suffering. We remain focused on supporting. our colleagues on site and to provide humanitarian aid, while we stand by the international community in calling for peace. In this challenging environment, we have achieved strong organic sales growth with Resilient Rig. We have raised prices in respect of the market and registered an increase in consumer demand. Inflation continues to rise, which will require further price changes and containment measures over the course of the year. As a team, we confirm our guidance for the current year".
The Group's organic growth reached 7.6%, with real internal growth (Rig) of 2.4% and a pricing of 5.2%. The phenomenon affected most of the geographical areas and product categories, with an increase in prices, a continuous momentum in retail sales and a further recovery in out-of-home channels. Total reported turnover increased by 5.4% to Chf 22.2 billion. Currency exchange led to a drop in turnover of 0.8% compared to last year.
The company's net divestments had a negative impact of 1.3%. In April, Nestlé Health Science completed the acquisition of a majority stake in Orgain, a leader in plant-based nutrition. The Group confirmed its outlook for the full year 2022: "We expect organic sales growth of approximately 5% and an underlying commercial operating margin between 17.0% and 17.5%. underlying stock in constant currency and capital efficiency are expected to increase", Nestlé said in a press release.
EFA News - European Food Agency