“Cost inflation continues to rise sharply, which will require further pricing and mitigation measures throughout the year,” the company said.
The Swiss food group Nestlé increased its income by 5.4% during the first quarter of 2022, to 22,238 million Swiss francs (21,622 million euros), according to the multinational, which anticipates further price increases to deal with cost inflation.
Specifically, between January and March 2022, Nestlé’s sales grew by 7.6% year-on-year in organic terms, discounting the impact of the exchange rate and variations in the company’s accounting perimeter, including an increase of 5.2% of the price.
Nestlé’s sales decreased by 1.5% year-on-year in North America, to 5,800 million Swiss francs (5,639 million euros), while in Europe the company’s turnover amounted to 4,633 million Swiss francs (4,505 million euros), 2.2% more than a year before.
Likewise, the multinational’s revenues in Asia, Oceania and Africa totaled 4,633 million Swiss francs between January and March, 3% more than a year earlier, while in Latin America turnover increased by 14.4%to 2,697 million francs (2,622 million euros) and in China it grew by 7.6%, to 1,361 million francs (1,323 million euros).
On its side, the turnover achieved through Nespresso during the first quarter increased by 2%, to 1,602 million Swiss francs (1,557 million euros), while the Nestlé Health Science business increased by 55.8%. , up to 1,449 million Swiss francs (1,409 million euros).
“In the midst of a challenging environment, we achieved strong organic sales growth”declared Mark Schneider, CEO of Nestlé, who defended that the company has increased prices “responsibly”.
“Cost inflation continues to rise sharply, which will require further pricing and mitigation measures throughout the year”he warned.
Looking ahead to 2022 as a whole, the multinational has confirmed its outlook and expects to achieve organic sales growth of around 5% and an underlying operating profit margin of between 17% and 17.5%.