Strong Revenue Increase in the First Quarter
Nestlé reported a revenue increase in the first quarter of 2025 that exceeded expectations. Total revenue rose by 2.3% to 22.6 billion Swiss francs. Analysts had anticipated an organic growth of 2.4%, supported by price increases, particularly in coffee and cocoa products. The low internal growth in volume (RIG) of 0.6% was offset by these price increases.
Background and Influencing Factors
- Holidays and Trading Days: The start of the year was hampered by fewer trading days and poorly timed holidays such as the Chinese New Year, Ramadan, and Easter.
- Regional Revenue Structure: About 40% of Nestlé’s revenue comes from Europe, Asia, and Latin America, where chocolate and coffee play a significant role.
- Stable Demand: The development may indicate a stable demand for Nestlé products, which could provide positive signals for investors.
Outlook and Forecast
Nestlé has confirmed its outlook for the fiscal year 2025, suggesting that the company continues to pursue its long-term goals. The stable demand and the ability to implement price increases might encourage investors, as they indicate a solid foundation for future growth.
Overall, Nestlé shows robust performance in the first quarter of 2025, supported by strategic price adjustments and sustained demand for its products.