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Dow Jones Newswires: Nestle reports higher sales, backs outlook as it lifts prices to combat inflationary costs

Nestle SA said Thursday that sales rose in the first quarter as the company stepped up pricing against significant cost inflation and backed its full-year outlook.

The Swiss consumer-goods giant NSRGY, +0.08% NESN, +1.53% reported quarterly sales of 22.24 billion Swiss francs ($23.43 billion), from CHF21.09 billion in the previous-year period. Analysts had forecast sales of CHF21.69 billion, according to a company-compiled consensus.

Quarterly sales grew 7.6% organically, with real internal growth of 2.4% and pricing of 5.2%. RIG, pricing and organic growth figures exclude the Russia region, according to the company.

“Growth was broad-based across most geographies and categories, with increased pricing, continued momentum in retail sales and a further recovery in out-of-home channels,” Nestle said.

Over the course of the year, rising cost inflation will require to take further pricing and mitigating actions, Chief Executive Officer Mark Schneider said.

Nestle confirmed it expects organic sales growth of around 5% and underlying trading operating profit margin between 17% and 17.5% in the full year. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

Write to Giulia Petroni at giulia.petroni@wsj.com

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