Nestlé expects its prices to continue to rise due to inflation |  Economy

Nestlé expects its prices to continue to rise due to inflation | Economy

“Cost inflation continues to rise dramatically, which will require additional pricing and mitigation measures throughout the year,” the company said.

Swiss food group Nestlé increased its revenues by 5.4% in the first quarter of 2022, to 22,238 million Swiss francs (21,622 million euros), according to the multinational. which foresees further price increases to address cost inflation.

Notably, between January and March 2022, Nestlé’s sales grew 7.6% year-on-year in organic terms, discounting the impact of the exchange rate and changes in the company’s accounting perimeter, including an increase of 5%. , 2% of the price.

Nestlé’s sales fell 1.5% yoy in North America to 5,800 million Swiss francs (5,639 million euros), while in Europe the company’s turnover was 4,633 million Swiss francs (4,505 million euros), 2.2% more than a year earlier.

Similarly, the multinational’s revenues in Asia, Oceania and Africa amounted to 4,633 million Swiss francs between January and March, 3% more than the previous year, while in Latin America, turnover increased by 14.4%to 2,697 million francs (2,622 million euros) and in China it grew by 7.6% to 1,361 million francs (1,323 million euros).

For its part, the turnover achieved through Nespresso in the first quarter increased by 2%, to 1,602 million Swiss francs (1,557 million euros), while the Nestlé Health Science business grew by 55.8%, to 1,449 million euros. Swiss francs (1,409 million euros).

“In the midst of a difficult environment, we have achieved strong organic sales growth “said Mark Schneider, CEO of Nestlé, who defended that the company raised prices “responsibly”.

“Cost inflation continues to grow rapidly, which will require additional pricing and mitigation measures throughout the year.”he warned.

Looking to 2022 as a whole, the multinational confirmed its outlook and expects to achieve organic sales growth of around 5% and an underlying operating profit margin of between 17% and 17.5%.

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