Nestlé soars in Zurich after above-expected quarterly report and confirmation of targets

(Il Sole 24 Ore Radiocor) - Nestlé confirmed its 2026 targets, despite uncertainties related to the effects of the conflict in the Middle East on commodity costs and consumer confidence, and exceeded expectations for first-quarter sales. The stock is celebrating in Zurich, where it is trading higher.

The group, owner of more than 2,000 brands - including Nespresso coffee pods, Maggi nuts and Smarties candies - surprised in particular with sales volumes, which recovered much more than expected. Due to the strength of the Swiss franc, sales decreased in the quarter by 5.7% compared to the first quarter of last year to CHF 21.3 billion (EUR 23.1 billion), with negative currency effects of 9.3%. However, sales volumes grew by 1.2%, far exceeding the forecasts of analysts surveyed by the Swiss agency Awp, who were aiming for an average increase of 0.2%. Turnover was instead expected at CHF 21.2 billion. Organic growth came in at 3.5%, compared to 4% in the fourth quarter of 2025, held back by a series of recalls affecting infant formula.

Despite 'geopolitical uncertainty and increased macroeconomic risks', the group maintained its forecasts for 2026, still aiming for organic sales growth of around 3%-4%, with sales volumes accelerating from 2025. The group explained that the Middle East accounts for 'about 3%' of its sales and that its factories in the region continue to operate. However, 'the broader effects, in particular the impact on raw material costs, distribution costs and consumer confidence, remain uncertain,' the company pointed out. Nestlé nevertheless confirmed its forecast for its recurring operating margin, estimating that it 'should improve on 2025 and strengthen in the second half of the year'.