Nestlé held its 2026 targets despite the contaminated infant-milk scandal and Middle East-driven commodity cost pressure, delivering a better-than-expected Q1 thanks to stronger volumes in coffee, culinary products and snacks. Revenue fell 5.7% year-on-year to 21.3 billion Swiss francs (23.1 billion euros) — slightly above the 21.2 billion Swiss francs consensus — with the Swiss franc's strength explaining most of the decline. Sales volume rose 1.2%, well above the average 0.2% forecast from analysts polled by AWP.
The share price jumped 6.20% to 80.22 Swiss francs (87.4 euros) at 9:50 Paris time, lifting the SMI by 1.04%. New CEO Philipp Navratil said the strategy to restore sales is "bearing fruit". The infant-milk recall dragged on organic growth, but the recovery in volumes more than compensated: Nestlé is still targeting full-year organic growth of around 3% to 4%, with volume growth accelerating versus 2025.
Middle East geopolitics adds uncertainty. The region represents about 3% of group revenue, and Nestlé says its factories there are still running — but it flags "broader effects on the group, including impacts on commodity costs, distribution costs and consumer confidence" as unclear. Separately, Nestlé France announced 180 potential job cuts from 2027, with real impact seen at 75 to 100 after vacancies and internal moves. Source: Les Echos, 23 April 2026.