Nestle sees price pressures easing -chairman tells newspaper

Melexis NV

31/03/2023 16:10

ZURICH, March 31 (Reuters) - Nestle  NESN.S  is seeing
an easing of price pressures stemming from raw materials,
transport and packaging costs, said Chairman Paul Bulcke, adding
that company would still increase prices. 
    "Price pressure is gradually easing," Bulcke told Swiss
newspaper Finanz und Wirtschaft in an interview published on
Friday.
    Nestle has already passed on to consumers some of the
increased costs via raised prices, but further hikes will be
needed this year, said Bulcke, who has been chairman at the
Swiss foodmaker since 2017.
    Nestle increased its prices by 8.2% during 2022, but sales
volumes - which it calls real internal growth - only increased
by 0.1%.
    During the third and fourth quarters of last year, the maker
of KitKat chocolate bars and Nescafe instant coffee suffered
lower sales volumes as cash strapped consumers cut back.
    Bulcke, who was Nestle's CEO from 2008 to 2016, was upbeat
that the company would be able to increase volumes.
    "For positive real internal growth on an annual basis, I
remain confident," he told the newspaper. "That is important,
because otherwise we lose market momentum."

 (Reporting by John Revill; Editing by Kirsten Donovan)
 ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))