Nestle increased quarterly revenue by 2.8%

The growth in sales of one of the world's largest food producers accelerated in the reporting quarter to 2.6%. The effect of the price increase was 0.2%, which reflects a slowdown in inflation in emerging markets, the company said. Given the positive effect of acquisition of assets and negative impact of exchange rate differences, Nestle's revenue in the 1st quarter increased by 1.4%, to 21.3 billion Swiss francs, the company said.

Positive dynamics was observed in all categories, especially strong growth was noted in the category of pet food, coffee and in the subdivision of Nestle Health Science.

In the Americas, Nestle's organic revenue growth reached 1.6% (revenue was 6.8 billion Swiss francs). The company's business in the US returned to positive dynamics amid improved sales of animal feed.

In North Africa, the Middle East and Europe, the company's revenue increased by 2.2% (revenue - 4.7 billion Swiss francs). Sales increased by 2.6% due to strong sales of animal feed, especially in Russia, and growth in the coffee category after the restart of the Nescafe Gold brand in the UK.

In Asia, Oceania and sub-Saharan Africa, Nestlé's organic revenue growth was 4.7% (revenue: 5.29 billion Swiss francs).

Following the results of 2018, Nestle expects organic earnings growth in the range of 2-4% (on Thursday the company confirmed this forecast).

source: reuters.com