As Nestle, the world’s largest food company, prepares to publish its full-year results on Thursday, analysts will be seeking to work out the real impacts of the Nescafe coffee owner’s push to raise its prices while also keeping hold of hard hit customers. Analysts polled by Nestle itself expect the company will report price hikes of 7.5% across 2023 — following hikes of 8.2% in 2022 — as the food seller pushes ahead with efforts to increase its margins, by offsetting inflationary pressures and passing on higher ingredient costs to customers.
Company watchers are anticipating these price rises will lead to a slight dip in the Kit Kat maker’s revenues, caused in part by price conscious customers switching over to cheaper alternatives to Nestle’s products. Yet analysts are also expecting that Nestle’s price hikes will successfully drive an uptick in its operating profits. Nestle’s
NESN,
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Switzerland listed shares were little changed on Wednesday after falling 9% over the previous 12 months. A selection of 21 analysts polled by Nestle itself, are now expecting the company will report a 22.7% surge in its operating profits, to 15.13 billion Swiss francs ($17.36 billion), caused by an uptick in its margins from rates of 45.2% in 2022 to 45.9% in 2023. The increase in Nestle’s operating profits is expected to be achieved in the face of a 1% drop in the company’s revenues, to 93.68 billion francs, caused by downtrading as customers switch to cheaper products and negative foreign exchange impacts, consensus forecasts s …
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Company watchers are anticipating these price rises will lead to a slight dip in the Kit Kat maker’s revenues, caused in part by price conscious customers switching over to cheaper alternatives to Nestle’s products. Yet analysts are also expecting that Nestle’s price hikes will successfully drive an uptick in its operating profits. Nestle’s
NESN,
+0.08%
Switzerland listed shares were little changed on Wednesday after falling 9% over the previous 12 months. A selection of 21 analysts polled by Nestle itself, are now expecting the company will report a 22.7% surge in its operating profits, to 15.13 billion Swiss francs ($17.36 billion), caused by an uptick in its margins from rates of 45.2% in 2022 to 45.9% in 2023. The increase in Nestle’s operating profits is expected to be achieved in the face of a 1% drop in the company’s revenues, to 93.68 billion francs, caused by downtrading as customers switch to cheaper products and negative foreign exchange impacts, consensus forecasts s …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]