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Nestle shrugs off pandemic impact, raises guidance

Nestle showed Wednesday (October 21) that it has continued to handle the global health crisis better than many of its rivals.

The world's biggest food group announced it beat expectations in the third-quarter with near-5% growth driven by strong demand for pet food, coffee and health products.

The performance in Q3 led the Swiss conglomerate to raise its guidance for organic sales growth to around 3% for this year.

Nestle said demand for food and drinks consumed at home stayed strong during lockdowns,

But that's in sharp contrast to sales of products consumed out of home and on the go, which fell 26% in the third quarter.

Nestle - the maker of Nescafe coffee and KitKat chocolates - also beat analysts estimates with its organic sales growth for the first nine months of the year.

Sales were up 3.5% compared to a predicted 2.8%.

The Americas recorded the strongest growth rate in the nine-month period, while the Chinese market returned to growth in Q3.

Nestle has coped with the global health crisis better than many rivals, due to its broad portfolio of products.

French peer Danone this week said it would review its operations after sales dropped in the latest quarter.

Wednesday's earnings report was well received by investors, with shares in Nestle rising 1.6% in early trade.