Nestle confirmed it expects to grow sales around 5% and keep margins broadly stable this year after higher pet food, dairy and coffee prices did not deter consumers in the first quarter, forecasting more price increases ahead
Confirms FY margin and growth targetsZURICH, April 21 - Nestle
on Thursday confirmed it expects to grow sales around 5% and keep margins broadly stable this year after higher pet food, dairy and coffee prices did not deter consumers in the first quarter, forecasting more price increases ahead. Russia's invasion of Ukraine has forced consumer goods companies to rethink their strategy in the country, while at the same time further pushing up costs for energy and commodities, threatening food groups' profitability.
But so far the world's biggest food group, with well-known brands like Nescafe coffee and KitKat chocolate, has been able to pass higher costs on to customers."We stepped up pricing in a responsible manner and saw sustained consumer demand. Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year," the company said.
The group based in Vevey on Lake Geneva confirmed it expects organic sales to rise by around 5% this year, with an underlying trading operating profit margin between 17% and 17.5%, compared to 17.4% in 2021.
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