Nestlé (NESN) Q1 2026 TU earnings summary

Executive summary

• Achieved 3.5% organic sales growth in Q1 2026, with RIG of 1.2% and pricing of 2.3%, led by Coffee and Food & Snacks, and broad-based growth across most categories and markets except infant formula.

• Emerging markets showed standout performance, while developed markets grew more slowly due to weaker consumer confidence.

• Infant formula recall impacted Nutrition, reducing organic growth by 90 basis points, but product availability has normalized and recovery is expected by year-end.

• Strategic focus on RIG-led growth, portfolio optimization, and marketing transformation targeting younger consumers.

• 2026 guidance maintained despite increased geopolitical and macroeconomic risks.

Financial highlights

• Q1 2026 sales reached CHF 21.3 billion, down 5.7% year-over-year due to a 9.3% negative foreign exchange impact.

• Organic growth was 3.5%, with RIG at 1.2% and pricing at 2.3%.

• Coffee delivered 9.3% organic growth and 3.5% RIG; Food & Snacks OG was 4.2% with 2.1% RIG.

• Developed markets contributed 57% of sales (CHF 12.2bn), emerging markets 43% (CHF 9.1bn), with emerging markets OG at 4.6%.

• E-commerce sales grew organically by 15.4%, now representing 21.5% of total sales.

Outlook and guidance

• Full-year 2026 guidance maintained: organic sales growth of 3%-4% with accelerating RIG versus 2025.

• Underlying trading operating profit (UTOP) margin expected to improve, especially in the second half.

• Free cash flow expected to exceed CHF 9 billion.

• Guidance reflects increased geopolitical and macroeconomic uncertainties, including Middle East conflict impacts.