Q3 sales beat forecasts at Nestle

22nd Oct 2026 14:41

(Sharecast News) - Sales at KitKat maker Nestle came in ahead of expectations on Thursday, as the Swiss food and drink giant's turnaround gathered pace.

Third-quarter sales at Nestle, which also owns Nescafe, Perrier, Thomy, Haagen-Dazs and Purina pet food, among others, rose 4% to CHF22.8bn (£20.7bn). Of the 4% upside, 2.8% was real internal growth - Nestle's preferred term for volumes - and 1.1% pricing. Analysts had expected RIG closer to 1.5%.

It was also the first quarter since 2024 that organic sales growth was driven primarily by volume rather than price.

Nestle said it had seen particularly strong trading in emerging markets, with organic growth of 6.8% compared to the 2.2% uplift seen in developed markets, although it also flagged a rebound in organic growth in North America. The best-selling product categories during the quarter were pet care and food and snacks.

Chief executive Philipp Navratil has sought to turn around Nestle since taking up the reins just over a year ago, after it was rocked by subdued consumer demand and tariffs.

He has refocused on growing volumes rather than increasing prices, and looking to slim the brand portfolio by reducing Nestle's exposure to ice creams, water and vitamins. In September, the company struck a $1bn deal to offload its mainstream vitamin brands to private equity firm Yellow Wood Partners.

Navratil said on Thursday: "Our execution is driving stronger growth. The agreement to divest our mainstream vitamins, minerals and supplements business marks another important step in focusing our portfolio where we have the strongest competitive advantage.

"Against a challenging external backdrop, our focus remains on delivering value, consistently executing with discipline and driving sustainable RIG-led growth across the business."

Looking to the full year, and guidance for annual organic growth of 3% to 4% was maintained.