After raising prices last month, FMCG giant Nestle has again warned of further price hikes. Nestle, which houses brands and products including KitKat, Nescafe coffee, Maggi, etc. has said rising costs amid inflation will force another increase in prices soon.
Nestle¡¯s CEO Mark Schneider said: ¡°Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year¡±,? as per a report in TheGuardian.
This comes after not just Nestle but other FMCG giants including HUL, Parle and Dabur announced last month their effective price hikes as well as intentions to do so.?
The price hikes have been a consequence of rising prices of raw ingredients combined with higher energy, fuel, labor and transport costs.
From Maggi noodles, milk, coffee to tea, a wide range of Nestle products in India had become costlier since the price hike last month.
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Nestle CEO Schneider also said Nestle had seen ¡°strong organic sales growth¡± as it had increased prices ¡°in a responsible manner¡± in the three months to reflect significant cost inflation. The company confirmed it is expected to meet full-year sales and profit targets amid sustained consumer demand, as per The Guardian report.
This is despite the fears of shortages of cereals and sunflower oil from Ukraine as well as petrochemicals from Russia that have reportedly added to existing inflation caused by soaring energy and fuel prices and a bounceback in demand since pandemic restrictions eased in many parts of the world in the past few months.
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