Nestlé’s quarterly sales rise 5% to 22.76 billion Swiss francs

Group organic sales increased by 4%, comprising real internal growth (RIG) of 2.8% and pricing growth of 1.1%. Speaking to analysts on October 22, chief executive Philipp Navratil said organic growth was positive across every geographical zone, globally managed business and product category. Emerging markets continued to expand strongly, while developed markets showed improved momentum. He said Nestlé was directing additional investment towards its growth platforms, which again recorded high-single-digit growth, and that its core business continued to improve. Chief financial officer Anna Manz said volume accounted for most of RIG, rather than changes in product mix. She described five successive quarters of improving organic growth and RIG, while noting that third-quarter RIG had been particularly strong.

Food & Snacks achieved organic growth of 5%, with RIG of 5.4% partly offset by a 0.4% decline in pricing. Nestlé attributed the increase to confectionery in the Americas and improving US frozen-food trends, supported by the timing of seasonal orders. Coffee’s organic sales rose by 3.4%, with RIG contributing 1.3% and pricing 2%. The company said US coffee RIG had progressively recovered from the initial effect of price increases introduced earlier in the year. Pet-care organic sales increased by 5%, with RIG of 4.3% and pricing of 1%. Nutrition grew by 0.3% organically, as pricing growth of 1.4% offset a 1.1% fall in RIG. Nestlé Waters & Premium Beverages recorded organic growth of 7.5%, comprising RIG of 3.5% and pricing of 4%. Nespresso’s organic sales increased by 3.7%, with RIG of 1.5% and pricing of 2.2%.

Reported sales in Zone Americas reached 10.09 billion francs ($12.23 billion), an increase of 6.5% from 9.47 billion francs a year earlier. Organic growth was 3.3%, with RIG of 2.4% and pricing of 1%, driven principally by the United States and Canada. North America recorded organic growth of 2.6%, comprising RIG of 1.8% and pricing of 0.8%. Food & Snacks, representing 30% of the zone’s sales, grew organically at a mid-single-digit rate. Nestlé cited strong confectionery RIG, underlying momentum and market-share gains. In food, the US frozen brands Stouffer’s, DiGiorno and Hot Pockets performed better, with positive market-share trends despite difficult conditions in the category.

Coffee accounted for 19% of Zone Americas sales and registered low-single-digit organic growth, led by pricing. Nestlé said US RIG was improving as Starbucks and Nescafé progressively recovered following earlier price increases, alongside better performance at Coffee Mate. Manz said pricing growth had moderated during 2026, chiefly because of movements in input costs. Substantial coffee and confectionery price increases imposed the previous year were entering the comparison base, while lower coffee and cocoa prices had meant few additional increases this year. She said input costs were again facing some upward pressure and that Nestlé would raise prices where possible without damaging medium-term consumer penetration. Navratil maintained the company’s forecast for organic sales growth of 3–4% in 2026 and its medium-term ambition of more than 4%. He attributed progress over the preceding four quarters to focus, clearer priorities and their implementation throughout the organisation.

In Russia, a presidential decree issued in September placed Nestlé’s operations under temporary external administration. The company remains the legal owner of the assets but said it no longer exercises management control. Manz said the Russian business would therefore cease to be consolidated from the end of September. Russia has been excluded from Nestlé’s organic-growth calculations since 2022, so the change does not affect organic growth, RIG or pricing. It will affect reported sales, underlying trading operating profit (UTOP) and free cash flow from the fourth quarter. The Russian business accounted for approximately 2% of annualised group sales and 3–4% of annualised group UTOP and free cash flow. Manz described the full-year effect as limited, but said Russia would present a slight headwind the following year because three quarters would be affected.

Nestlé derecognised approximately 1.6 billion francs ($1.94 billion) of net assets associated with the Russian business. It also recorded a non-cash charge of about 1.4 billion francs ($1.7 billion) for accumulated currency-translation adjustments, which it said would not change total group equity. The company expects an adverse impact of around 900 million francs ($1.09 billion) on group net debt for the full year in 2026. Manz said the situation remained fluid and that Nestlé would provide further updates as appropriate.

The company also discussed its agreement to sell its mass-market vitamins, minerals and supplements business to Yellow Wood Partners for approximately $1 billion. Announced on September 1, the transaction is expected to close by the first half of 2027. Asked about its implications, Manz declined to provide forecasts and said Nestlé would give clearer guidance at year-end, when the timing of transaction completions should be more certain. The sale covers seven brands—Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu—as well as the US private-label supplements business and related operations. The business generated $1.2 billion in sales in 2025. It operates mainly in the United States, with a presence in Canada, China and other countries.