Nestle SA beat analysts’ expectations for revenue growth as the KitKat maker implemented its biggest price hike in decades.
The company said it expects sales to grow about 8 percent for the full year, the high end of its earlier guidance range. Nestle also said Wednesday that it plans to acquire Starbucks Corp.’s Seattle’s Best Coffee brand. for sale at an undisclosed price.
Chief Executive Officer Mark Schneider has delivered his fastest sales growth yet as the world’s largest food and beverage company still has the power to raise prices without driving consumers away. Inflation is rising around the world, with the euro zone rate hitting a record 10 percent last month.
Pricing contributed 7.5 percentage points to the organic growth rate as volumes increased 1 percent. For the full year, Nestle was on track to post its biggest price gains in at least two decades.
Sales grew 8.5 percent on an organic basis in the first nine months of 2022, Nestle said. Analysts expected an increase of 8.3 percent.
Though the grocery giant managed to increase volumes overall, demand for Nespresso suffered compared to a strong 2021, when growth was double-digit as consumers kept more coffee at home during the pandemic. Volume of the premium coffee capsule unit fell 1.9 percent while prices rose 4.9 percent.
https://www.independent.ie/business/world/nestle-revenue-surges-with-biggest-price-hikes-in-decades-42078287.html Nestle earnings soar with biggest price increases in decades