Nestlé Raised Prices More Than 9% in First Half of the Year
World’s largest packaged food company said price hikes boosted sales and profitability, joining other consumer goods companies Nestlé is the latest consumer goods company to report that they have lifted prices on food and beverages. Photo: fabrice coffrini/Agence France-Presse/Getty Images By Joshua Kirby July 27, 2023 2:32 am ET Food giant Nestlé said sales rose sharply in the first six months of the year, buoyed by price hikes that it and other big consumer goods companies have been able to push through amid still-high inflation in much of the world. The Switzerland-based maker of Kit Kat and Nespresso booked sales of 46.29 billion Swiss francs, equivalent to $53.78 billion, in the first six months of the year, 8.7% higher organically than in the same period last year. This was just shy
Nestlé is the latest consumer goods company to report that they have lifted prices on food and beverages.
Photo: fabrice coffrini/Agence France-Presse/Getty Images
Food giant Nestlé said sales rose sharply in the first six months of the year, buoyed by price hikes that it and other big consumer goods companies have been able to push through amid still-high inflation in much of the world.
The Switzerland-based maker of Kit Kat and Nespresso booked sales of 46.29 billion Swiss francs, equivalent to $53.78 billion, in the first six months of the year, 8.7% higher organically than in the same period last year. This was just shy of analysts’ expectations, according to a consensus compiled by the company.
Higher pricing was behind the sales growth. Nestlé said prices rose 9.5% in the period.
Rival consumer companies like
Unilever
and
Coca-Cola
have all reported this week lifting prices on their food and beverages. It has enabled many of them to cover rising commodities and other costs while increasing profits.
Nestlé said Thursday its underlying margins rose to 17.1% for the period.
Nestlé also raised its outlook, saying it now expects organic sales growth of 7% to 8% this year compared with a previous range of 6% to 8%. Nestlé said it still expects an operating margin of 17% to 17.5% for the year. The company expects volume growth to add to the top line as well as pricing in the second half, Chief Executive Mark Schneider said.
“At-home consumption post-Covid has now normalized, removing a growth drag on some of our categories,” Schneider said.
Write to Joshua Kirby at [email protected]
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