Nestlé reports 2.8 per cent growth in Q1 as price hikes offset weak consumer demand

Nestlé reports 2.8 per cent growth in Q1 as price hikes offset weak consumer demand Nestlé has reported a 2.8 per cent increase in organic sales for the first quarter of 2025, largely driven by price increases as the Swiss food giant contends with rising input costs, particularly for coffee and cocoa. The company\'s total reported sales increased by 2.3 per cent to CHF 22.6 billion (£20.57 billion) in the first three months of the year, as pricing contributed 2.1 per cent to growth while real internal growth (RIG) – a measure of sales volume – was a modest 0.7 per cent. “Growth was broad-based across markets and categories, with improving market share trends across many businesses, particularly our billionaire brands,” said Laurent Freixe, Nestlé CEO. The results come as major competitors also struggle with consumer hesitancy. Unilever reported a slight revenue drop of less than one percent in its first quarter results, while Procter & Gamble cut its sales and profit forecast, citing a significant pullback in consumer spending. P&G executives signalled likely price increases due to US tariffs after reducing their full-year profit growth expectations from 10-12 per cent to 6-8 per cent. Nestlé’s confectionery business showed the strongest performance with 8.9 per cent organic growth, driven by a 10.1 per cent price increase, while coffee products grew at 5.1 per cent. Both categories saw double-digit price rises in some markets as Nestlé moved to counter inflation in raw material costs.