Nestlé's first-quarter sales increased by 1.4%, lower than analysts' estimate of 2.9%.
The Zhitong Finance App learned that due to the slowdown in demand faced by Nestle (NSRGY.US) in the North American market, sales growth in the first quarter was lower than expected.
Nestlé said in a statement on Thursday that first-quarter sales rose 1.4%, lower than analysts' estimate of 2.9%. The company's actual internal growth (a measure of sales volume) was negative, while the price growth rate slowed down.
Consumer goods groups such as Nestle and Unilever (UL.US) have been trying to win back market share through their branded products. After a period when inflation soared, overwhelmed consumers chose to buy cheaper store brands. Earlier this week, the results of DANOY.US (DANOY.US) and RBGLY.US (RBGLY.US) suggested that shoppers are returning to big brands.
Nestle CEO Mark Schneider (Mark Schneider) said that in 2024, Nestlé will prioritize growth led by sales volume and product portfolio, and strengthen marketing and innovation as shoppers begin to switch to more expensive products.
Furthermore, Nestlé confirmed the forecast for organic sales growth of about 4% and a moderate increase in basic trade operating margins this year.