STORY: Nestle beat first-quarter sales forecasts and stuck to its annual outlook on Thursday (April 23).
First-quarter organic sales grew 3.5% - well ahead of analyst expectations of 2.4% as people bought more of its coffee and pet food.
But the firm said organic growth took a roughly 90 basis-point hit during the quarter due to a recall of infant formula products.
Nestle added product availability was now back to normal.
However, China was a tough spot for the world's biggest packaged food company.
Organic sales there fell just over a tenth due a drop in volumes and flat prices.
Nestle has seen years of falling sales in the country due to factors like intense competition from local brands and lower consumer spending.
It said its overhauling its business in China to improve performance.
The Swiss food giant added it had seen 'very little impact' from the Iran war so far on its global business.
Although it warned about the risk of higher energy and freight cost.
CEO Philipp Navratil said consumer behavior was changing due to a surge in fuel prices.
He said shoppers are walking rather than driving to stores, and eating at home rather than in restaurants.
Navratil argued Nestle's portfolio is well set up for people being more at home, especially in emerging markets in Asia.
Investors liked what they heard and shares jumped over 6% in early trade.
