Nestlé raises prices – food giant brings in billions in sales
Created: 04/25/2022, 15:11
By: Magdalena von Zumbusch
Nestlé has unexpectedly high sales in the first quarter of 2022.
© Christoph Hardt/Imago
The company's sales rose by 5.4 percent in the first quarter of 2022. The price increases apparently not only covered increased production costs.
Vevey – The food giant Nestlé made more sales than expected in the first quarter – mainly due to higher food prices.
The group also wants to raise prices further – due to rising production costs, they say.
Nestlé in 1st place on European stock exchange listings: Is it currently also successful thanks to strong price increases?
The food giant Nestlé is behind many well-known brands: Nescafé, Nesquik, Maggi, Smarties and many other names belong to the Swiss group.
Nestlé shares have risen sharply since the current CEO, Mark Schneider, at the beginning of 2017.
The market value is around 70 percent higher than at the beginning of 2017, at the equivalent of a little more than 330 billion euros, reports the news
portal
chip.de.
Nestlé is currently the most valuable listed company in Europe.
Sales rose in the past quarter by 5.4 percent compared to the same period last year to 22.2 billion Swiss francs (21.6 billion euros), as the Vevey-based company announced in its press release.
According to the information, it was growth from within – i.e. without exchange rate effects and the acquisition and sale of parts of the company.
Above all, however, the 5.2 percent increase in sales prices of the food company was the decisive factor for the current sales development, the volume growth was 2.4 percent.
The higher prices probably did not just pass on increased production costs.
However, CEO Schneider asserted that Nestlé had acted “responsibly” with the price adjustments, according
to
chip.de.
Video: What belongs to Nestlé?
Nestlé: Growth mainly in pet products, coffee, sweets and water
Purina's petcare products were the largest contributor to organic growth by product category, the company reports in its release.
Coffee posted high single-digit growth, primarily due to continued high demand for
Nescafé, Starbucks
and
Nespresso
.
Sales of sweets grew in the double digits, as did water products, mainly due to the recovery of the premium brands
S.Pellegrino
and
Perrier (
two other Nestlé water brands are likely to disappear from Germany)
.
Dairy and infant and baby food and Nestlé Health Science products each posted mid-single-digit growth.
Finally, ready meals and culinary products saw low single-digit growth, with continued strong demand for
Maggi
and
Garden Gourmet
.
Incidentally, against the background of the difficult trading conditions in Russia, Nestlé decided to concentrate on providing essential food in Russia: Therefore, figures are also given that no longer include the Russia region, according to Nestlé's press release.
The real numbers are therefore still higher than the stated ones.
The company also announced further price increases.
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