Nestlé, the world's largest packaged food company, achieved organic sales growth in the second quarter that exceeded market expectations, and also raised its full-year performance forecast, while announcing the establishment of a joint venture for its water and premium beverage businesses with investment firm Platinum Equity.

The company said on Thursday that it expects to realize nearly 3 billion euros ($3.43 billion) from the joint venture, in which both Nestlé and Platinum Equity will each hold a 50 percent stake.

The new venture will be named 'Peranel' and will include more than 30 brands sold in 120 countries, including San Pellegrino, Source Perrier, and Aqua Pana, along with the global brand Nestlé Pure Life and a number of local water brands.

Nestlé also raised its forecast for organic sales growth in 2026 to between 3 and 4 percent, compared to its previous estimate of around 3 percent.

This comes as part of the restructuring of the company's business portfolio under CEO Philippe Navratil, who focuses on boosting growth and profitability by concentrating on core brands.

Reuters had reported in May last year that Nestlé had hired Rothschild bank to study options for a partnership or sale of a stake in its European water business, while retaining partial ownership.

Organic sales, which exclude the impact of exchange rate fluctuations and acquisitions, grew by 3.7 percent in the second quarter ended June 30, exceeding the average analyst estimate of 3.6 percent.

The company also raised product prices by 1.9 percent, compared to expectations of 1.8 percent, while real sales growth in terms of volumes sold rose by 1.8 percent, in line with market expectations.

Nestlé's portfolio includes prominent global brands such as Nescafé, KitKat, and Maggi, and the company continues to focus on improving the performance of its core brands while reorganizing its non-core activities. \"); googletag.cmd.push(function() { onDvtagReady(function () { googletag.display('div-gpt-ad-3341368-4'); }); }); }]