Nestle projects stable sales growth in Q2 amid easing cost inflation

Swiss food giant Nestle expects stable growth in sales volumes from the second quarter through the rest of the year as cost inflation eases, CEO Markus Schneider told Swiss weekend paper "Schweiz am Wochenende" on Saturday.

"From the second quarter and for the rest of the year, we can expect a stable, positive contribution to growth from volume and product mix," Schneider said.

In April, Nestle, known for its Nespresso, KitKat, and Perrier brands, reported a 5.9 per cent decline in first-quarter sales, but a 1.4 per cent increase when adjusted for currency fluctuations. The company forecasted a 4 per cent growth in currency-adjusted sales for 2024.

Schneider expressed confidence that Nestle has overcome challenges posed by cost inflation and lower sales volumes due to price increases. "We now see a stabilization of the situation," he noted.

(With Reuters inputs)