Nestle raises full-year guidance after third-quarter sales beats poll

FILE PHOTO: The company’s logo is seen at a Nestle plant in Konolfingen, Switzerland September 28, 2020. REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) – Nestle NESN.S raised its guidance for organic sales growth to around 3% for 2020 on Wednesday after posting better-than-expected growth of 4.9% for the third quarter driven by strong demand for pet food and health products.

The world’s biggest food group has weathered the COVID-19 pandemic better than some of its peers thanks to its broad portfolio, with resilient pet food and health businesses making up for a slump in food sales to restaurants and cafes.

For the first nine months of the year, the maker of Nescafe coffee and KitKat chocolate said its organic sales grew by 3.5%, compared to analysts’ average estimate for 2.8%, according to a company-supplied consensus.

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