Nestle says it's raised prices by 10% this quarter
Cheerios, Nescafe, Nesquik, KitKat, Milkybar and Purina products, manufactured by Nestle SA, arranged in London, U.K., on Monday, July 26, 2021.
Consumer goods firm Nestle raised prices by 9.8% in the first quarter, attributing this to "significant cost inflation."
The Switzerland-based company on Tuesday reported sales revenue up 5.6% in the three-month period, coming in at 23.5 billion Swiss francs ($26.49 billion), slightly ahead of an analysts' consensus estimate.
But sales volumes, listed as "real internal growth," fell 0.5%.
The company raised prices by 8.2% last year, and saw sales volumes up by 0.1%.
It comes as consumers struggle with sharply higher prices of food, household basics and beyond. While year-on-year headline inflation has cooled to 2.9% in Switzerland, it remains at 6.9% in the euro zone and 10.1% in the U.K.
Nestle said it still saw growth in categories including its Purina PetCare range. Coffee — in which it owns the Nescafe, Nespresso and at-home Starbucks brands — saw high single-digit growth, while confectionery sales, which include KitKat, Smarties, Milky Bar and Quality Street, grew in the double digits.
It also said it had seen limited "consumer downgrading" related to prices.
Source: CNBC
