Jason Adlen | Bloomberg | Getty Images
Bars of original KitKat chocolate, produced by Nestle SA.
Food group Nestle confirmed its full-year guidance after organic sales growth accelerated to 2.8 percent inside the first quarter of 2018, helped by improving volumes.
Packaged food companies have seen their sales slow as consumers prefer fresh foods, deemed healthier along with more natural, along with have reacted with cost-cutting measures, portfolio management along with increasing innovation efforts.
The maker of KitKat chocolate bars along with Maggi soups confirmed on Thursday its target to grow organic sales by 2-4 percent that will year along with improve its trading operating margin.
Quarterly organic growth of 2.8 percent, which strips out currency swings along with portfolio modifications, was ahead of the average estimate of 2.5 percent in a Reuters poll along with up via 1.9 percent inside the final quarter of 2017.
Volume growth picked up to 2.6 percent, via 1.2 percent inside the final quarter of 2017, however prices rose by only 0.2 percent, Nestle said in a statement. cost pressures were illustrated by a cost row with European retailers.
Growth inside the Americas accelerated to 1.2 percent along with Asia was also better than the previous quarter at 4.7 percent, while Europe, the Middle East along with North Africa slowed to 2.2 percent, hit by declining prices, Nestle said.