MILAN – Nestlé confirmed on Thursday its target to grow organic sales by 2-4 percent this year and improve its trading operating margin. It also said it was on track to return to mid-single-digit organic sales growth by 2020.
Meanwhile, organic sales growth accelerated to 2.8 percent in the first quarter of 2018, up from 1.9 percent in the final quarter of 2017, helped by improving volumes.
The maker of Nespresso and Nescafé also confirmed it expected restructuring costs of around 700 million Swiss francs ($723 million) this year.
In fact, total sales increased by 1.4% on a reported basis to CHF 21.3 billion (3M-2017: CHF 21.0 billion). Net acquisitions had a positive impact of 0.2% and foreign exchange reduced sales by 1.6%.
Mark Schneider, Nestlé CEO stated:
“We are pleased to report a solid start to the year, with all regions contributing to our growth. Our volume growth improved noticeably while pricing remained soft. We are encouraged by our innovation pipeline, continued progress with the implementation of our portfolio management strategy and our efficiency initiatives. Combined with the organic sales development, they put us on track for our 2018 guidance and our 2020 mid-term targets.”
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