Wet cat food demand offsets broader slowdown in Nestlé’s pet business

Nestlé’s Purina reported CHF 4.4 billion ($4.9B/€4.6B) in sales for the first quarter of fiscal year (FY) 2026, down 6.5% year-over-year (YoY).

The segment delivered 2.7% organic growth and 1.7% real internal growth (RIG), supported by continued strength in wet cat food. Performance was driven particularly by the super-premium brands Purina ONE and Fancy Feast, despite a reversal in customer buy-in from Q4 2025.

The Swiss-headquartered giant says that this was partially offset by a slowdown in dry dog food. Pricing increased 1% in the quarter.

Company-wide sales reached CHF 21.3 billion ($23.6B/€22.1B), a 5.6% YoY decline. Organic growth was 3.5%, while real internal growth stood at 1.2%, supported by strong growth across most zones and categories, particularly in coffee and food & snacks.

America’s contribution

Pet contributed 32% of Zone Americas’ sales, despite low single-digit organic growth and flat real internal growth.

This performance was impacted by price increases in wet cat food, as well as the reversal of customer order phasing that had benefited Q4 2025. The US, Mexico and Brazil were the strongest markets overall.

Nestlé’s said to investors that the improvement in petcare is largely driven by US. “This is driven by additional capacity coming online, allowing us to finally service unmet demand in wet cat, where the market is growing,” adds CFO Anna Manz.

Europe and Asia

Manz adds that they see “the same strong demand” for wet cat food in Europe, too. “Here we have greater skew towards cat and fewer capacity issues, and so continue to deliver strong RIG-led growth,” she adds.

Purina contributed 29% of Zone Europe revenue, with mid-single-digit organic growth, maintaining positive momentum over the last 18 months.

Growth was broad-based across markets and brands, including Felix, Pro Plan and ONE, reflecting continued strong commercial execution and ongoing innovation. The company also reports gaining market share in the segment.

In Zone Asia, Oceania and Africa (AOA), the segment represented only 3% of sales. Organic growth turned positive at low single-digit levels, driven by solid real internal growth across developed and emerging markets, except China.

Outlook

Nestlé is maintaining its guidance for FY2026 amid increased geopolitical uncertainty and macroeconomic risks. “The conflict in the Middle East will have some impact on commodity and distribution costs, and possibly on consumer behavior, but it’s too early to know the full extent of this,” notes Manz.

Organic growth is still expected to be around 3% to 4%, while real internal growth is expected to accelerate compared to 2025.

The underlying trading operating profit (UTOP) margin is also expected to improve versus 2025, with strengthening in the second half of the year. Lastly, the company expects free cash flow to be above CHF 9 billion ($10B/€9.3B).