Food companies are grappling with surging commodity prices that are crimping their profit margins
The Nestlé logo on the company’s building in Mexico City. Picture: REUTERS
Its underlying trading operating profit margin is expected to slip to about 17.5% this year from 17.7% in 2020, and then improve again from 2022, Nestlé said in a statement on Thursday. Schneider said input costs were expected to rise by about 4% in 2021 and the company would accelerate price increases in the second half. He said Nestlé needed to raise prices by about 2% to offset 4% cost inflation. It raised prices by 1.3% in the first half, and said a better product mix and efficiencies would also help.
Kepler Cheuvreux analyst Jon Cox said “the market probably did not want to hear about a delay in passing through prices”, while the strong top line and increased growth guidance had been expected.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gauteng warns against 'unconscionable' price hikes amidst food shortage fears after unrestA supplier or person contravening these Regulations could be fined up to R1 million, a fine of up to 10 percent of a firm’s annual turnover, or imprisonment for a period not exceeding 12 months. food inflatedprices RebuildSA
Read more »
WANDILE SIHLOBO: Forecasts suggest food price inflation will start to slowGlobal agricultural commodity prices in the second half are likely to continue to soften
Read more »
Gauteng warns against 'unconscionable' price hikes amidst food shortage fears after unrestICYMI: A supplier or person contravening these Regulations could be fined up to R1 million, a fine of up to 10% of a firm’s annual turnover, or imprisonment for a period not exceeding 12 months. food inflatedprices RebuildSA
Read more »
Koo recall: None of the cans were supplied to other food manufacturersThe company which manufactured the millions of cans recalled this week by Tiger Brands - due to a minute risk of very low number of cans developing leaks - did not supply the cans in question to any other food manufacturer.
Read more »
WATCH: Junk food stored for two years does not go offA UK nutritionist has gone viral after her daughter shared a TikTok video of her junk food storage to bring awareness to the unhealthy diet.
Read more »
Looters urged to return stolen electrical appliances 'but not the food' | WitnessThe National Freedom Party has urged people to voluntarily return all electrical appliances looted during the recent civil unrest in Gauteng and KwaZulu-Natal. | WitnessKZN
Read more »