In a quarter marked by economic turbulence, Nestlé’s portfolio of global snack and beverage brands once again proved its worth. Posting a 2.8% rise in organic sales, the company exceeded expectations and highlighted how consumer demand for trusted comfort foods remains firm even during times of inflation and political uncertainty.
Coffee (especially Nespresso) and confectionery (notably KitKat) saw continued strong demand. Nestlé was able to push through 2.1% average price hikes without major volume losses, a testament to the brand loyalty it enjoys.
However, profit pressure was evident in India, where rising input costs dragged net profit down 5.2%. Still, the company is optimistic: operations in most regions remained solid, and margin recovery is expected as commodity costs begin to stabilize.
Uncertainty over global tariffs, particularly from U.S. actions, poses a potential disruption. But Nestlé’s leadership stressed that localized production and sourcing remain key buffers. CEO Freixe has been actively engaging shareholders, signaling strategic stability and transparency moving forward.
Nestlé maintained its full-year outlook, banking on a strong innovation pipeline and operational flexibility to weather potential disruptions from inflationary pressures and global trade volatility.
