On Tuesday, Nestle (NESN.S), the world’s largest packaged food business, announced slightly better-than-expected first-quarter revenues.
The Swiss business, which manufactures Maggi stock cubes, Kit Kat wafer bars, and Nescafe coffee, reported a 5.6% sales growth to 23.5 billion Swiss francs ($26.48 billion), exceeding the company-provided analyst forecast of 23.27 billion.
Nestle raised prices by 9.8% in the three months ending March, although sales volumes, which the firm calls real internal growth, declined by 0.5%.
“Portfolio optimization efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation,” Nestle CEO Mark Schneider said.
Consumer goods businesses from Unilever (ULVR.L) to P&G (PG.N) had boosted prices dramatically for two years to combat increasing commodities and supply chain costs that began pinching margins during the epidemic and worsened when Russia invaded Ukraine, and oil prices skyrocketed.
Comment Template