Nestlé has been expecting a slow start to the new year and it has come. Certainly in North America, the brand manufacturer sold less.
Volume falters
First-quarter 2024 reported sales fell 5.9% to 22.1 billion Swiss francs (23 billion euros). The decline came mainly due to weak demand in North America and the partial sale of its European frozen pizza business to investor group PAI.
Although price increases eased to 3.4%, the producer still sold 2% less. The remaining 1.4% organic sales growth was driven entirely by Europe and emerging markets. In Europe, organic sales rose 4.4%, but that was still entirely due to price increases of 4.6%. Nestlé gained market share there in animal and baby food, but lost in water.
CEO Mark Schneider said he had expected a slow start and to see a strong rebound in volumes in the second quarter. ‘A wide range of growth initiatives within the group are now starting to bear fruit,’ said the top executive, who continues to count on 4% organic sales growth for 2024. Underlying earnings per share are expected to rise between 6% and 10%.
