Nestle has reported its strongest start to a year since 2016, as the company raised prices and experienced growth with its previously underperforming US frozen food brands Hot Pockets and Stouffer’s.
Revenue climbed by 3.4% on an organic basis in the first quarter. CEO Mark Schneider beat the 2.8% analysis consensus by the biggest margin since he started leading the Swiss company in 2017. The executive has been on a quest to revamp Nestle, signing USD14bn worth-of-deals in 2018, including the purchase of licenses to sell coffee products under the Starbucks brand.
Furthermore, the company’s stock, which set a record earlier this month, rose 1.2% earlier this week. The pricing gain was the biggest in 10 quarters, as the company passed higher raw-material costs on the consumers, especially in Brazil and the US.
In the EMENA region (Zone Europe, Middle-East and North Africa), frozen pizza brand Wagner and Buitoni moved to positive growth, while vegetarian products posted high single-digit growth.