UPDATE: The company's CFO, Wan Ling Martello, is heading to a new role as executive vice president of Asia, Oceania, and Africa for the company starting in May, replacing Nandu Nandkishore who is retiring. CEO Paul Bulcke will handle some CFO responsibilities before a replacement CFO is named.
Dive Brief:
- While Nestle SA reported only a slight 0.5% rise in first quarter sales ending March 31, the company also posted a 4.4% increase in organic sales, the latter which topped analysts' estimates.
- Those sales numbers included a 3.7% boost for Nestle's Americas unit.
- Nestle confirmed a full-year prediction of 5% organic growth attributed to "improvements in margins, underlying earnings per share in constant currencies and capital efficiency,” Paul Bulcke, Nestlé CEO said in a statement.
Dive Insight:
Nestle was the third European company this week, following Unilever and Danone, to announce better-than-expected financial numbers for the quarter. While multiple sources called the sales numbers positive, The Wall Street Journal noted sales numbers were below expectations. After about two years of uncertainty in the global food market, this could be a sign of recovery.
At Nestle's annual meeting, Nestlé Chairman Peter Brabeck-Letmathe said that the merger between H.J. Heinz Co. and Kraft Foods Group could inevitably lead to a major contender for the top spots in the food industry.
Nestle is also in talks to shed Davigel, and faces scrutiny amid California's drought.