Food – Nestlé benefits from higher prices – Economy

Price increases boosted Nestlé’s growth in the first quarter. The Swiss group’s sales rose to CHF 22.2 billion from January to March, as the company announced. The manufacturer of Nespresso, Maggi and Kitkat thus achieved an increase of 7.6 percent adjusted for acquisitions, sales of divisions and currency effects. Price increases contributed 5.2 percent to the growth. With the higher prices, the group is reacting to rising costs for raw materials, packaging, energy and transport. “Cost inflation continues to rise sharply, which is why further price adjustments and containment measures will be necessary during the course of the year,” said CEO Mark Schneider. Consumer demand has not suffered so far.

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