The world’s largest food manufacturer Nestlé grew strongly in the first nine months of the year thanks to price increases. Despite the high inflation, pet food, Nespresso capsules and sweets were still in demand among customers. In Germany, too, Nestlé wants to continue raising prices.
From January to September, the Swiss group had sales of CHF 69.1 billion (EUR 70.4 billion) worldwide. Under our own steam, i.e. excluding acquisitions and exchange rate effects, the increase in sales was 8.5 percent. Nestlé increased prices by an average of 7.5 percent, plus volume increases of 1.0 percent, as Nestlé announced in Vevey on Wednesday. Pet products were the largest contributor to growth, but the coffee business also grew strongly.
Compared to the first half of the year, Nestlé has thus increased the pace of growth. In the third quarter alone, it reached 9.3 percent. This has mainly to do with the price increases, with which Nestlé is now constantly passing on the rising costs to customers.
Nestlé also announced price increases for Germany. The group is under great pressure in this country, said Germany boss Marc Boersch with a view to the inflation rate of 10 percent in September. They try to cushion the price surge as much as possible with cost efficiency. “We turn every euro three times over, in the plants, in logistics and administration as well as in advertising expenditure. For Germany, we assume that prices will continue to rise in 2023.” We will proceed as responsibly as possible, emphasized Boersch.
For the year as a whole, Nestlé is now more confident globally and is forecasting organic sales growth of around 8 percent. Previously, the target was 7 to 8 percent.
Communication Nestlé
