“This is a situation that nobody wanted,” Schneider said in an interview with Bloomberg TV. “We are still seeing significant upward pressure from energy, some agricultural products and also from transport costs.”
Nestlé has already raised its prices by an average of 7.5 percent this year. Most customers accepted the price increases, because the volume of goods sold fell by just a small 0.2 percent in the third quarter. Over the first nine months, the group sold 1 percent more, resulting in a 8.5 percent increase in turnover to 69.1 billion Swiss francs (converted 70.4 billion euros).
Pet food was the largest contributor to growth, but the coffee business also performed well. Nestlé now wants to acquire the Seattle’s Best Coffee brand from Starbucks, it announced on Wednesday.
However, the higher prices do not cover all increased costs, the CEO warns. He also fears that consumers, who have to save because of their expensive energy bill, will buy fewer Nestlé products in the future and will opt for cheaper brands. In addition, the Swiss group is also taking into account higher wage costs from next year.
Nestlé expects a turnover increase of 8 percent for this year. The operating profit margin is said to be 17 percent, a second decline in a row.