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Nestlé beats 9M estimates with 3.5% organic growth, coffee posts mid single-digit growth

Nestlé Board
Nestlé's corporate headquarters building in Vevey, Vaud, Switzerland

MILAN – Thanks to a strong demand for pet food, coffee and health products, Nestlé has successfully navigated the Covid pandemic. For the first nine months of the year, organic sales grew by 3.5%, beating the 2.8% in a company-supplied consensus of analysts’ estimates. That’s after a 4.9% increase in the third quarter, the quickest pace in at least six years. Coffee posted mid single-digit growth, fueled by strong consumer demand for Starbucks products, Nespresso and Nescafé.

The Swiss giant said the outlook for revenue growth this year has improved as its big brands thrive and forecasts organic sales growth of about 3% this year.

Mark Schneider, Nestlé CEO, commented:”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. Strong organic growth was broad based and supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science, as well as the acceleration of our coffee business in the third quarter.

We continue to develop our portfolio with speed and discipline. As an example, we are transforming Nestlé Health Science into a nutrition and health powerhouse through a combination of strong organic growth and targeted acquisitions. The recent additions of Zenpep, Vital Proteins and Aimmune Therapeutics are further steps in the expansion of our nutritional health offerings.”

NestléNestlé had previously expected organic growth of 2-3% for this year and some analysts said the increase in forecasts was cautious as 2% growth in the final quarter would be enough to achieve it. Nestle confirmed it wanted to improve its margin.

Growth in out-of-home channels remained significantly negative, with sales declines moderating in the third quarter.

However, demand for at-home consumption, trusted brands and products with health benefits remained strong. Purina PetCare, dairy, coffee at-home and Nestlé Health Science continued to report strong growth.

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