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Nestlé sales have increased 3.3% to CHF 65.5bn (£53.9bn) in the past nine months as the food giant focused on volume growth in the deflationary market.

The increase, which missed analyst expectations, was composed of 2.5% real internal growth and 0.8% higher prices. Foreign exchange headwinds held sales back -1.7%.

The Kit Kat and Nespresso maker also revised down its full-year forecasts from in-line with 2015 at +4.2% to +3.5%, but it held expectations for improvements in margins.

CEO Paul Bulcke said: “In an environment marked by deflation and low raw material prices, we continued to privilege volume growth, resulting in real internal growth at the higher end of the industry in both emerging and developed markets. Pricing remained soft but increasing.

“Our growth was broad-based across categories, allowing us to gain or maintain market share in most of our businesses. We are making progress in addressing our challenges and driving our different initiatives amidst a generally softer trading environment.”

Organic sales growth was positive in all three of Nestlé’s geographic areas, with the Americas up 4.8%, Europe, Middle East and North Africa up 2.1% and Asia, Oceania and sub-Saharan Africa up 2.5%.

Developed markets grew 1.9% and emerging markets increased 5.3% as India recovered as the Maggi noodles business continued to gain back market share after going back on sale following a ban.

In Western Europe, Nescafé Dolce Gusto, petcare and frozen pizza were the main growth drivers again, with Italy and the Iberian region performing strongest.

“In line with our strategy we continue to invest for the future,” Bulcke added. “We maintain a high level of brand support while building our innovation pipeline, both globally and locally. At the same time, we drive more operational and structural efficiencies by standardizing, sharing and scaling more activities above market.”

Shares in Nestlé have fallen 1% since markets opened to CHF 73.90.

Morning update

Pernod Ricard has recorded 4% of organic growth in its first quarter to €2.2bn, but currency headwinds across the world reduced the reported figure to just +1%. The drinks business increased sales in the Americas by 8% thanks to continued strength in the US, with Europe up 6%. Its strategic international brands, which grew 3%, were the main driver of overall sales growth improvement. Pernod said there was continued strong momentum on Jameson, good growth on Ballantine’s and improvement on Absolut and Martell. Strategic local brands grew 5% thanks to Indian whiskies and Seagram’s Gin in Europe but difficulties for Imperial in Korea.

CEO Alexandre Ricard said: “We have had a good start to the financial year, consistent with our full-year guidance. Therefore, we confirm our FY17 guidance of organic growth in profit from recurring operations of between +2% and +4%. We will continue to implement our long-term growth strategy, focusing investments behind our priority brands, markets and innovations and remaining disciplined on pricing and costs.”

Travel concession group SSP has entered the Indian travel food and beverage market after creating a joint venture with K Hospitality Group, which operates a range of food and beverage outlets across the country. SSP will pay £57.9m for a 49% stake in Travel Food Services, which has approximately 170 units in India, including at six major airports in domestic and international terminals and in railway stations. In addition to these contracts, it operates food and beverage outlets at Muscat Airport in Oman. Its brand portfolio includes a number of in-house concepts, as well as third-party brands such as KFC, Krispy Kreme, Pizza Hut and Coffee Bean and Tea Leaf. TFS’ revenue was £41.7m, with EBITDA of £8.3m, in the year ended 31 March 2016.

SSP CEO Kate Swann said: “This partnership is in line with the strategy we set out at our IPO. We have been looking for the right entry point into this exciting growth market and are delighted to have found an excellent partner in TFS. TFS brings a well-established business with a strong portfolio of brands. The combination of SSP’s international expertise in the travel sector and TFS’ strong local presence will provide an excellent platform for future growth in the Indian market.”

Yesterday in the City

Hotel Chocolat (HOTC) rose 3.3% to 235p after revealing some sweet growth in its maiden full-year results. The luxury chocolate retailer boosted sales 12% and recorded a big jump in profitability in the year to 26 June.

Reckitt Benckiser (RB) suffered after missing sales expectations in the past quarter. The multinational slipped 2.6% to 7,136p as its growth slowed as it continued to suffered from the fallout from South Korean disinfectant scandal.

The FTSE 100 kept its head above water as global stocks faltered yesterday ahead of the final US presidential debates. The blue-chip industries spent most of the day in the red before a late rally helped it finish 0.3% up at 7,021.92 points.

Tesco (TSCO), Morrisons (MRW) and Sainsbury’s (SBRY) continued to benefit from more encouraging Kantar figures earlier this week. The listed supermarkets finished up 3.1% to 214.8p, 2.7% to 228.8p and 1.2% to 237.9p respectively.

Ocado (OCDO) was also up 2.3% to 273.6p, Marks & Spencer (MKS) was up 1.5% to 338.8p and Greencore (GNC) rose 3.3% to 315.8p.

Unilever (ULVR), B&M (BME) and British American Tobacco (BAT) all fell, down 0.8% to 3,467.5p, 0.4% to 240p and 0.4% to 4,777p.

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