Nestlé said on Thursday that it has raised its prices by 5.2% in the first three months of 2022 and has said rising costs will force another increase soon.
Mark Schneider, the CEO of Nestlé, said that cost inflation will continue to rise sharply and will require more pricing and mitigating efforts over the course of the year.
Nestlé said organic sales will increase by about 5% this year, with an underlying trading operating profit margin between 17% to 17.5%, compared to 17.4% in 2021.
“We stepped up pricing in a responsible manner and saw sustained consumer demand,” Schneider said.
North America, Nestle’s largest market, saw the most significant increase in prices at 8.5%.
“Organic growth now excludes the Russia region, given significantly disrupted trading conditions and Nestle’s decision to focus on providing essential food,” Nestlé said.
Nestlé is the latest significant brand owner to issue a warning about the impact of rising prices of raw ingredients along with increased energy, fuel, labor, and transportation expenses.
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