Nestlé Q3 Organic Growth Accelerates to 4.0% on Volume Gains, Keeps 2026 Guidance

Nestlé’s sales growth picked up in the third quarter as shoppers bought more of its products, with organic growth rising to 4.0% from 3.7% in the previous quarter, Investing.com reported. The Swiss food and beverage giant, which published its nine-month figures on Thursday, also maintained its full-year 2026 guidance.

Sales for the three months to September reached CHF22.76 billion, up from CHF21.64 billion a year earlier, according to the company’s statement. Organic growth came in ahead of the 3.4% analysts had expected, according to a Newsquawk tally of forecasts. Real internal growth, the measure of volumes and product mix, improved to 2.8%, while pricing contributed 1.1% as earlier increases moderated.

Over the first nine months, sales were broadly flat at CHF65.87 billion as a 3.7% currency headwind offset organic growth of 3.7%. Chief executive Philipp Navratil said in the release: “Our execution is driving stronger growth.”

Waters and India lead growth

Nestlé Waters and Premium Beverages was the standout unit, with organic growth of 12.3% driven by North America and helped by warm weather in Europe, the company said. Brands such as Sanpellegrino and Maison Perrier were cited as contributors.

Zone Asia, Oceania and Africa grew 6.4% organically, posting its strongest volume growth since early 2021. India expanded about 20% on top of double-digit growth a year ago, FoodNavigator and Business Upturn noted, while Greater China rose 4.2% amid what Nestlé described as challenging conditions. Zone Americas grew 3.3%, and Europe managed 1.2% in a competitive market.

By category, food and snacks rose 5.0% and petcare 5.3%, while coffee grew 3.4% as pricing eased against a strong prior-year quarter. Nutrition was nearly flat at 0.3%, with an infant formula recall trimming about 20 basis points from group growth. E-commerce sales grew 15.3%.

Russia unit deconsolidated

Nestlé said it stopped consolidating its Russian operations from the end of September, after a presidential decree placed them under temporary external administration. The group still owns the assets, which accounted for roughly 2% of annual sales and 3% to 4% of underlying operating profit and free cash flow.

The move removes about CHF1.6 billion of net assets from the balance sheet and triggers a non-cash currency translation charge of around CHF1.4 billion, with no effect on total equity. Year-end net debt will rise by roughly CHF0.9 billion, though the company expects limited impact on 2026 underlying results.

What’s next

Nestlé reaffirmed its 2026 targets of 3% to 4% organic growth with faster volume growth than in 2025, an improved underlying trading operating profit margin, and free cash flow above CHF9 billion. It expects second-half margins to be broadly similar to the first half, excluding any tariff refunds, and said it remains on track for its mid-term goal of sustained real internal growth above 2%.

The group is also reshaping its portfolio, with the US$1.0 billion sale of its mainstream vitamins and supplements business, including Nature’s Bounty, to Yellow Wood Partners expected to close by the first half of 2027, subject to regulatory approval.

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