Nestle shares fell on Thursday after the world’s largest food seller reported a sharper-than-expected drop in its full-year sales, caused by cost conscious customers balking at higher prices. The Swiss company reported a 0.3% drop in its closely-watched real internal growth (RIG) metric – which measures the volumes of products it sells – following its decision to push ahead with price hikes that drove customers away from its products.
“Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products,” Nestle CEO Mark Schneider said. The Kit Kat seller increased its prices by 7.5% throughout 2023 in line with its efforts to push up its profit margins, which have fallen over the past two years as inflationary pressures have increased the costs of the ingredients it uses, including cocoa. Nestle’s
NESN,
-4.16%
Switzerland listed shares fell 4% on Thursday having fallen by 13% over the previous 12 months. The slump in Nestle’s real internal growth saw the company fall short of analysts’ expectations, following forecasts it would see the key metric increase by 0.1%, according to 21 company watchers polled by Nestle itself. Nestle’s reported sales also fell 1.5% to 93 billion Swiss francs ($ 106 billion), even as the Nescafe maker increased its …
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“Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products,” Nestle CEO Mark Schneider said. The Kit Kat seller increased its prices by 7.5% throughout 2023 in line with its efforts to push up its profit margins, which have fallen over the past two years as inflationary pressures have increased the costs of the ingredients it uses, including cocoa. Nestle’s
NESN,
-4.16%
Switzerland listed shares fell 4% on Thursday having fallen by 13% over the previous 12 months. The slump in Nestle’s real internal growth saw the company fall short of analysts’ expectations, following forecasts it would see the key metric increase by 0.1%, according to 21 company watchers polled by Nestle itself. Nestle’s reported sales also fell 1.5% to 93 billion Swiss francs ($ 106 billion), even as the Nescafe maker increased its …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]