Nestle Sales Decline: Q1 2024

Nestle Sales Decline: Q1 2024

Thu, Apr 25th 2024

Nestlé faces a sales decline in Q1 2024 but hopes price increases and steady organic growth is to come.

KEYSTONE/Jean-Christophe Bott

Nestlé experienced a decrease in sales during the first quarter of 2024, totaling CHF 22.1 billion, a 5.9% drop compared to the same period last year. This decline was primarily attributed to the strength of the Swiss franc, which adversely affected sales figures by 6.7%.

Sales volume also saw a reduction by 2.0%, marking a return to negative real internal growth (RIG), after a brief period of positive growth in the final quarter of 2023.

Key challenges included reduced consumer activity in the significant U.S. market following the end of a food aid program and internal IT issues within Nestlé’s health division that led to supply bottlenecks.

Nestlé implemented a price increase of 3.4%. This adjustment was more moderate compared to the 6.8% increase in the fourth quarter of 2023. When considering organic metrics, which adjust for exchange rate fluctuations and sourcing and sales effects, there was a 1.4% growth over the previous year’s first quarter.

Despite the downturn in early 2024, Nestlé’s management maintains a forward-looking stance. The company is set to achieve an organic sales growth target of around 4% for the full year.

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