Solid Q1 for Nestle; 2022 Guidance Confirmed, but Margin Outlook Less Confident; Shares Rich

Nestle's first-quarter sales update included strong organic growth of 7.6% (real internal growth of 2.4%, pricing of 5.2%), ahead of company-compiled consensus estimates of 5%. Growth continued to be supported by the retail channel (at an elevated level, up 5.9% in the first quarter versus 9.2% in the same period in 2021) due to still-robust demand for at-home consumption. The out-of-home channels are recovering as expected, up 35.6% in the period versus down 11.6% in the same period last year.