Nestle hikes prices due to 'unprecedented' increases in costs

21:15 Sun, 05 February

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29.Jul .2022 13:30

Nestle hikes prices due to 'unprecedented' increases in costs

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Swiss food giant Nestle on Thursday said it is hiking prices again due to "unprecedented" rises in costs, joining McDonald's and Coca-Cola in putting forward price rises this week.

KitKat maker Nestle already hiked prices 6.5% in the first half of this year along with other firms hit by rising food and energy costs.

"Our local teams implemented price increases in a responsible manner," said CEO Mark Schneider in a statement.

"We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies," he added.

Nestle said organic sales went up 8.1% in the first half of the year, noting it expects organic sales growth of 7%-8%.

Net profit fell by 11.7% as a result of one-off items, including higher impairments and taxes, it noted.

On Wednesday, McDonald’s also raised the price of its cheeseburger in the UK for the first time in more than 14 years.

The price of a cheeseburger jumped from 99 pence ($1.19) to £1.19 ($1.43) as inflation in the UK hovers at a 40-year high, AA reports.