Nestlé has won growth across the board, as its pursuit of volumes under new CEO Philipp Navratil pays off.
Organic growth of 3.5% followed a 1.2% jump in group volumes, with all seven divisions reporting higher unit sales. The jump in organic growth came despite a 0.9 percentage point headwind from infant formula recalls.
Group revenues for the three months to 31 March 2026 hit CHF21.3bn (£20.1bn).
Nespresso was the group’s fastest-growing division, defying global pressure on coffee volumes to achieve a 2% jump in real internal growth (RIG), Nestlé’s measure of volumes.
“Our first-quarter performance demonstrates that our RIG-led growth strategy is delivering,” said Navratil.
The Swiss conglomerate’s strong quarter had helped to offset any anticipated headwinds from the Iran war, according to Nestlé, which reiterated guidance it would achieve 3%-4% organic growth in 2026.
In conjunction with new chairman Pablo Isla, Navratil has pursued a restructure of Nestlé centred on RIG, with targeted divestments, the merger of internal business units, and 16,000 job cuts worldwide.
“Building on the momentum in the first quarter, we continue to execute our strategy to deliver a stronger Nestlé,” said Navratil.
“In an uncertain and complex environment, I would like to thank all our people for their dedication and our customers and consumers for their trust.”
Bernstein analyst Callum Elliott called the results “a genuine positive surprise”.
“Organic growth of 3.5% compares to company-compiled consensus of 2.4%, suggesting a beat of around 110bps. The beat appears to driven almost entirely by volumes, with RIG over 100bps ahead of expectations,” he said.
“The Navratil/Isla turnaround train appears to be gaining momentum.”
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