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4d ago

Nestle Reports Strong Q1 Sales Growth Despite Tariff Uncertainty and Price Hikes

The company raised prices by 2.1% globally, with double-digit increases in some markets, while cutting U.S. prices by 1% to address competition from private-label brands.

A Swiss flag flutters on the headquarters of Nestle in Vevey, Switzerland, November 25, 2024. REUTERS/Denis Balibouse/File Photo
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FILE PHOTO: Jars of Nescafe Gold Instant coffee, part of food giant Nestle's portfolio, are seen at the company's headquarters in Vevey, Switzerland, February 21, 2024. REUTERS/Denis Balibouse/File Photo
Unilever is the London-listed consumer giant behind Dove soap.

Overview

  • Nestle achieved 2.8% organic sales growth in Q1 2025, exceeding expectations, though volume growth was limited to 0.7%.
  • The company implemented a 2.1% global price hike to counter soaring commodity costs, including double-digit increases in some regions.
  • In the U.S., Nestle reduced prices by 1% to defend market share against growing competition from private-label brands.
  • CEO Laurent Freixe noted ongoing uncertainty around the indirect impacts of U.S. tariffs, including potential effects on consumer confidence and costs.
  • While initial price hikes impacted demand, Nestle observed stabilization as consumer behavior and competitive dynamics adjusted.