21 Apr 2022
Nestle Q1 Growth Surpasses Expectations due to Surge in Prices
The Index Today
On Thursday, prominent food company Nestle unveiled its margin and sales goals for the 2022 fiscal year, after its strong growth in the first quarter exceeded expectations spurred by higher prices.
According to Reuters, the food and beverage giant in a statement revealed that its organic sales climbed by 7.6%, surpassing the company’s 5% rise prediction, after prices were hiked by 5.2%. They added, "Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year."
The company, whose coffee and pet care products emerged as the best performing lines in the first quarter, is also expecting a trading operating profit margin between the 17% and 17.5% range. Nestlé’s growth does not include its Russian market where it has currently suspended a majority of its operations, reported Reuters.