VEVEY, Switzerland—Nestle SA reported Monday a 6 percent increase in sales in the first quarter thanks to strong growth and acquisitions.
The world's largest food and drink company said sales reached 25.7 billion Swiss francs ($25.21 billion; 15.97 billion euros) in the three months ended March 31, up from 24.25 billion francs during the period last year.
That beat analyst expectations of 25.37 billion francs ($24.9 billion; euro15.78 billion). Sales were boosted by acquisitions last year, particularly of Novartis' Gerber baby food unit and its medical nutrition business, the company said.
Sales also increased thanks to strong organic growth -- an industry yardstick comprising volume growth and price increases, Nestle said.
The company, which reports profit figures only for the half year and full year, said organic growth rose 9.8 percent from 7.4 percent.
Nestle said the sales growth was slightly slowed by the strength of the Swiss franc compared with other currencies.
"On the basis of this high-quality growth, with a good balance between real internal growth and pricing, I am confident that we will achieve our 2008 targets," chief executive Paul Bulcke said.
Shares in Nestle were down 2.34 percent at $2.30 in Zurich.
The company said it expects organic growth for the full year to be similar to last year's 7.4 percent, and improvement in the operating margin.
Nestle announced earlier this month plans to sell eye care company Alcon Inc. for $39 billion over several years.
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Dow Jones Newswires contributed to this report
