Nestle, the world’s biggest food maker, reported first-quarter revenue growth that beat analyst estimates as the Swiss company sold more Nescafe soluble coffee in China and Friskies pet food in North America.
Sales increased 7.2 per cent, excluding acquisitions, divestments and currency swings, Vevey-based Nestle said on Friday in a statement. That exceeded the 6.7 per cent average estimate of 15 analysts surveyed by Bloomberg. Higher prices contributed 4.4 per cent to sales growth, higher than analyst estimates of 3.8 per cent.
Volume increased 2.8 per cent, led by 7.2 per cent growth in the Asia, Oceania and Africa region.
New products such as Maggi Juicy Roasting cooking aids and Dreyer’s smoothies has helped Nestle counter weakening consumer sentiment in the US and Europe, while expanding in Asia and other emerging markets. The company said 2012 has already proved itself to be “challenging” and that it didn’t see any “dramatic” change in growth patterns during the first quarter compared to the October-December period. Raw-material prices will rise at a “low to mid single-digit” pace.
Nestle expects organic sales growth for the year to meet its target of five per cent to six per cent after beating that range in both 2010 and 2011. The KitKat maker also has a goal to widen its so-called trading operating profit margin in constant currencies and boost earnings per share on the same basis.
Nestle shares fell 0.5 per cent to 56.90 francs at 10.20 am in Zurich trading. The stock has gained 5.4 per cent this year and closed at a record 57.20 francs yesterday.