Nestle SA’s sales growth slowed down as inflation eased and the maker of Nescafe coffee put through smaller price increases.
Revenue rose 7.8% on an organic basis in the first nine months of the year, the company said Thursday, missing analyst forecasts. A measure of volume posted a fifth consecutive quarterly decline as consumers balked at higher prices.
Nestle reiterated its forecast of 7% to 8% organic sales growth this year. Chief Executive Officer Mark Schneider said in July growth should be at the upper end of that range. The company said it expected real internal growth, a gauge of volume, to turn positive in the fourth quarter.
A Nestle spokesperson said GLP-1 drugs, which help with weight loss, haven’t had an impact on sales.
Nestle Health Science was one of the slowest growing businesses, reporting organic sales growth of 2.5%. Vitamins, minerals and supplements saw negative growth, following supply chain constraints resulting from an IT implementation issue in the US.
Nestle said capacity constraints also weighed on sales of Perrier bottled water.
(Updates with details on constraints in fifth paragraph)
