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Nestle expects prices to rise further as inflation rises

Nestle warns that further price increases may be on the horizon, battling sharp cost inflation.

The Kit Kat and manufacturer Shreddies said they have already raised prices by more than 5 percent in the first three months of 2022, but will seek further increases.

Mark Schneiderchief executive officer of Swiss Food group said: “Cost inflation continues to rise sharply, which will require further pricing and mitigation throughout the year.”

Nestle added that customer demand has remained despite the jump in prices, Mr Schneider added.

The group reported an increase in organic sales of 7.6% in the three months to March, driven by price increases of 5.2% and volumes of 2.4%.


In these first months of the year, the war in Ukraine caused untold human suffering. We continue to focus on supporting our colleagues and providing humanitarian assistance, together with the international community in the call for peace.

Mark Schneider, Nestle

It turned out that prices jumped the most North Americawhich increased by 8.5 percent, while European buyers witnessed an average growth of 4.1 percent.

Meanwhile, Purina The owner showed that the prices of pet care products jumped the most, rising by an average of 7.7 percent in the first quarter.

The company said it expects total sales to grow by about 2022 this year, despite the possibility of further inflationary headwinds amid the war in Ukraine.

Mr Schneider said: “In these first months of the year, the war in Ukraine has caused untold human suffering.

“We continue to focus on supporting our colleagues and providing humanitarian assistance, together with the international community in the call for peace.”

Matt Britsman, a stock analyst at Hargreaves Lansdown, said: “Raising prices to keep things moving in the right direction due to inflation of input costs will certainly not be a course of action.

“But nonetheless, this is the situation in which Nestle has found itself and is unlikely to disappear any time soon, which adds pressure to the group’s volume strategy.

“So far, volumes could still be moving in the right direction, thanks to the restoration of out-of-home canals when demand fell while restrictions were in place last year.”

Nestle expects prices to rise further as inflation rises

Source link Nestle expects prices to rise further as inflation rises

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