On April 21, it predicted that further price increases would be needed in the future as inflation rises.
Swiss multinational food and beverage companies raised prices for their products by 5.2% in the first quarter of 2022, generating 7.6% organic sales growth, surpassing analysts’ expectations. 5.1%..
“In the first few months of this year, the war in Ukraine caused indescribable human suffering,” said Mark Schneider of Nestlé. CEOSaid in statement.. “In this harsh environment, we have achieved strong intrinsic sales growth,” he said.
“We have responsibly strengthened pricing and saw sustained consumer demand. Cost inflation continues to rise exponentially, requiring further pricing and mitigation throughout the year. . “
Russia’s invasion of Ukraine, which began on February 24, is putting pressure on the global economy as all costs continue to rise, from energy to other commodities.
Consumer goods companies are raising prices to offset rising inflation (currently at its highest level in the US in 40 years) and a supply chain problem that was initially exacerbated by the COVID-19 pandemic and further exacerbated. Had to pass on to. By the conflict in Ukraine.
However, some major US retailers, such as Walmart Inc., Target Corp., and CVS Health Corp., have been accused by nonpartisan watchdogs of benefiting from rising inflation.
According to Nestlé, the biggest price increases were in North America and Latin America, where prices rose 8.5% and 7.7%, respectively.
Price increases for pet care products were the largest at 7.7%, followed by water at 7.2% and cooked utensils and utensils (including products such as frozen foods and sauces) at 6.4%.
Products in the nutrition and health sciences, confectionery, powder and liquid beverage sections of the company showed the lowest price increases, with confectionery prices rising 3%.
Nestlé is optimistic about the future, although more prices are expected to rise later this year, with intrinsic sales growth of about 5% in 2022 and an underlying operating margin of 17.4% to 17% to 17.5%. I predict that it will be. 2021 percent.
Nestlé figures announced in March that the company would suspend production and sales of some unwanted commodities amid rising political pressure from Ukrainian leaders over its continued presence in Russia. Later, Russia is excluded.
However, Nestlé continues to provide Russians with essential products such as infant formula and medical and hospital nutrition, but said the company has not benefited from these products.
Nestle Earned By 2020, more than 165 billion rubles (about $ 1.7 billion) will be Russian rubles, with the country just below it. 2 percent Of the company’s income in 2021.
Elsewhere on April 21, Nestlé said it was one of the few companies to maintain shelf inventory in Ukraine as the Russian invasion continued.
The world’s largest food and beverage company was able to nearly sustain operations in western Ukraine, but said operations at its Kharkov plant were shut down due to heavy bombardment.
Food giants have also promised the Ukrainian people a financial and commercial contribution of CHF 15 million (about $ 15.9 million) this year.
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Katabella Roberts is a reporter currently based in Turkey. She focuses primarily on the United States and covers the news and business of The Epoch Times.