Nestlé Delivers Strong Growth, Strengthening Its Defensive Investment Case

ANDRIEVSKII.CH | October 22, 2026

The global food group is accelerating real internal growth, with Asia, Oceania and Africa leading regional performance. For investors seeking resilience during market turbulence, the latest results strengthen the case for Nestlé.

The defensive sector continues to justify its place in an investment portfolio. Nestlé’s third-quarter 2026 results demonstrate that the company can accelerate growth despite a challenging external environment.

The key measure is real internal growth, or RIG, which captures changes in sales volumes and product mix, excluding pricing. RIG reached 2.8% in the third quarter and remained positive across all geographic zones and globally managed businesses.

This matters when assessing the quality of growth. As the contribution from price increases moderates, Nestlé’s ability to generate growth through volumes and product mix becomes increasingly important.

Asia, Oceania and Africa Set the Pace

Asia, Oceania and Africa delivered the strongest organic growth among Nestlé’s geographic zones. Third-quarter organic growth reached 6.4%, compared with 3.3% in the Americas and 1.2% in Europe—almost twice the Americas’ rate and more than five times Europe’s.

RIG in Asia, Oceania and Africa reached 5.0%, making a substantial contribution to the region’s performance.

These results support the investment thesis behind Nestlé’s exposure to Asian and other emerging markets. Their contribution helps sustain group momentum while mature economies grow more moderately. The regional figures cover Asia, Oceania and Africa collectively, however, and should be interpreted on that basis.

Philipp Navratil, Nestlé CEO commented:

“Our execution is driving stronger growth. RIG was positive across all zones and globally managed businesses and reached 2.8% in the third quarter, continuing the performance improvement of recent quarters. The agreement to divest our mainstream vitamins, minerals and supplements business marks another important step in focusing our portfolio where we have the strongest competitive advantage. Against a challenging external backdrop, our focus remains on delivering value, consistently executing with discipline and driving sustainable RIG-led growth across the business”.

Financial highlights

• Focus on execution driving strong RIG; on track for mid-term target of sustainable 2%+ RIG
• 9M-26 organic growth (OG) of 3.7%, with real internal growth (RIG) of 1.9% and pricing of 1.8%.
• Q3-26 OG of 4.0%, with RIG improving to 2.8% and pricing of 1.1%, moderating as expected.
• Q3-26 RIG positive across all zones and globally managed businesses.
• Strong emerging markets growth; improving momentum in developed markets
• Emerging markets continued to deliver strong growth, with OG of 6.8% and RIG of 4.3% in Q3, while developed markets remained solid with OG of 2.2%.
• OG rebounded in North America, as Petcare sell-in matched strong sell-out and Coffee RIG improved following the price increases earlier in the year.
• In Europe, RIG recovered after the impact of Q2-26 de-listings, while pricing moderated further in a competitive environment.

Operational and strategic updates

• Good progress in executing our strategy
• Investment prioritization behind high growth platforms and execution focus in the core is driving results – growth platforms maintained high single-digit OG and core improved further in Q3.
• Further portfolio sharpening with agreement to divest the mainstream Vitamins, Minerals and Supplements (VMS) business for USD 1.0 billion announced in September.
• Ongoing steps to strengthen supply chain resilience and support long-term business performance, reflected in updated strategy on Climate & Nature and Packaging Sustainability.
• Update on Nestlé’s business in Russia
• Nestlé’s business in the Russian Federation no longer consolidated, effective end of September 2026, following placement under temporary external administration.
• No impact on Q3 or 9M sales, limited financial impact on 2026 underlying results.

2026 guidance maintained

• OG expected to be in the range of 3% to 4%, with RIG accelerating versus 2025, driven by our focused growth plans.
• Underlying trading operating profit (UTOP) margin expected to improve versus 2025; second half margin expected to be broadly similar to the first half, excluding any tariff refunds.
• Free cash flow expected to be above CHF 9 billion.

Andrievskii Verdict

Nestlé remains a core holding in my defensive investment strategy during periods of turbulence. I have covered the company over the past six months, and these results reinforce my confidence in that positioning. So far, the choice appears timely: accelerating RIG provides fundamental support for the investment thesis.

Following the correction from CHF 127 to CHF 84 and the return to price levels seen in 2017, the technical picture complements Nestlé’s fundamental assessment. The investment thesis rests on the scale of the business, resilient demand and growth prospects. The attractiveness of current price levels requires evaluation against the company’s expected earnings and cash flow.

Nestlé’s consistent dividend policy adds to its appeal. The annual dividend per share increased from CHF 2.70 in 2020 to CHF 3.10 in 2026, rising in every year shown. That progression complements the investment thesis with recurring income for shareholders.

My assessment remains cautiously positive. Improving real internal growth, strong positions in emerging markets and consistent dividend payments support Nestlé’s role in the defensive portion of a portfolio. The next test is whether the company can sustain its RIG improvement and deliver on its full-year guidance.

Disclaimer: This publication is provided for informational purposes only and does not constitute personalised investment advice or a recommendation to buy or sell securities. Investments in financial instruments involve risks, including the potential loss of capital.

Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein