Nestle sales jump on price increases

Nestle’s sales surged in the first nine months of the year as the maker of Nespresso capsules, Purina pet food and Haagen-Dazs ice cream raised its prices in response to soaring inflation.

The Swiss global food giant, which also makes Gerber baby food and S.Pellegrino water, reported on Wednesday total sales of 69.1 billion Swiss francs ($69.1 billion) between January and September, up 9.2 percent from the same period last year.

Pricing was up 7.5 percent over that period, “reflecting significant cost inflation”, the company said in a results statement.

“We delivered strong organic growth as we continued to adjust prices responsibly to reflect inflation,” Nestle chief executive Mark Schneider said in the statement.

Countries across the world have faced cost-of-living crises as consumer prices have soared to decades-high levels following Russia’s invasion of Ukraine.

“The challenging economic environment is a concern for many people and is impacting their purchasing power,” Schneider said.

“That’s why we aim to keep products affordable and accessible while considering the interests of all our stakeholders.”

Nestle’s organic growth — considered a key indicator of the company’s health as it strips out the effects of acquisitions or divestments — reach 8.5 percent, slightly above forecasts by analysts surveyed by Swiss news agency AWP.

Agence France-Presse