News

Nestle reports 6.2% quarterly sales drop

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April 24, 2020

Nestle reported total sales decreased by 6.2% to CHF 20.8 billion ($21.46 billion) for the first quarter of 2020 while organic growth reached 4.3% with real internal growth of 4.7% and pricing of -0.4%, according to a press release.

The company noted in the press release that it is too early to assess the impact of the coronavirus pandemic.

The company noted the following financial highlights:

• Acquisitions net of divestitures reduced sales by 4.7%, foreign exchange reduced sales by 5.8%.
• Portfolio management is on track. The divestment of the U.S. ice cream business for $4 billion to Froneri was completed on Jan. 31, 2020.
• The sale of a 60% stake in the Herta charcuterie (cold cuts and meat-based products) business to Casa Tarradellas is expected to close in the first half of 2020.
• The company has decided to explore strategic options, including a potential sale, for its Yinlu peanut milk and canned rice porridge businesses in China.
• The company will retain and develop its existing Nescafé ready-to-drink coffee business.

While it is still too early to assess the full impact of COVID-19, the company maintains its original full-year 2020 guidance for the time being. 

"Our company remained resilient in the first quarter, reflecting our diversified product portfolio and our strong local presence in 187 countries," Mark Schneider, Nestlé CEO, said in the press release. "However, this crisis is far from over and we will face many uncertainties in the coming quarters."