By Alexander Marrow
LONDON, Oct 22 (Reuters) – Nestle reported better than expected organic sales growth for the third quarter on Thursday and said it had deconsolidated its Russian business after Moscow seized control of Nestle’s Russian assets last month.
President Vladimir Putin ordered the temporary seizure of Nestle’s assets on September 17, part of an intensifying crackdown on European firms in response to Europe’s support for Ukraine, Russian officials and US business people have said.
Nestle CFO Anna Manz said the Russian business was no longer being consolidated into financial results from the end of September, with no impact to organic sales, volumes and pricing.
However, the move does impact reported sales, free cash flow and Nestle’s underlying trading operating profit starting in the fourth quarter, Manz said, noting that derecognising the net assets would negatively impact net debt by approximately 900 million Swiss francs ($1.09 billion)for 2026.
Nestle, the maker of Maggi stock cubes and Nescafe coffee, maintained its full-year 2026 organic sales outlook in the range of 3% to 4% and recorded a 4% uptick in quarterly organic sales.
Nestle’s 1.1% price increases were below the average analyst estimate of 1.9%. Real internal growth – or sales volume – expanded 2.8%, exceeding expectations for a 1.5% rise.
Since taking the helm in September 2025, CEO Philipp Navratil has reduced Nestle’s exposure to ice cream and water brands through joint ventures, slimming the Swiss conglomerate’s portfolio in search of growth, a tactic similar to rival consumer goods firms such as Unilever and Reckitt.
($1 = 0.8227 Swiss francs)
(Reporting by Alexander MarrowEditing by Dave Graham)
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