Nestlé Beats Q3 Sales Forecasts Amid Russian Asset Seizure
Nestlé reported third-quarter organic sales growth of 4% while deconsolidating its Russian operations following a seizure order by President Vladimir Putin.
Nestlé S.A. reported third-quarter organic sales growth of 4%, surpassing analyst expectations of 3.4% to 3.5%. The growth was driven by recoveries in the snacks, water, and pet food sectors, with real internal growth reaching 2.8%. CEO Philipp Navratil confirmed the company remains on track for its 2026 annual organic growth target of 3-4%.
Parallel to these gains, the company is removing its Russian operations from its financial statements effective September 30, 2026. This deconsolidation follows a September 17 order by Russian President Vladimir Putin to temporarily seize the company's assets as part of a broader crackdown on European firms.
The move removes approximately CHF 1.6 billion in assets from the balance sheet and triggers a non-cash charge of roughly CHF 1.4 billion for currency translation adjustments. CFO Anna Manz stated that while the asset derecognition does not affect pricing or organic sales, it will impact reported sales and free cash flow starting in the fourth quarter.
