North American consumers were the hardest hit, with prices up 8.5%, the company said in its first-quarter earnings report on Thursday. Latin America saw the second largest increase, with the price of Nestlé products increasing by 7.7%.
CEO Mark Schneider indicated that more increases are on the horizon.
“we [have] He said in a statement that prices have been boosted in a responsible manner and witnessed continuous demand from consumers, adding that cost inflation continues to rise sharply, which will require further pricing and easing measures throughout the year.
Energy was the biggest driver of inflation, but global food prices are rising.
Nestlé reported a 5.4% increase in total sales during the quarter, and expects sales to grow 5% for the full year. Brands such as Purina PetCare, Nescafé and KitKat were the biggest contributors to its growth in the first quarter.
But higher costs can negatively affect profits. The company expects core profit margin for this year to be between 17% and 17.5%, compared to 17.4% in 2021.
– Julia Horowitz contributed to the report.
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