Nestlé and Procter & Gamble reported resilient earnings as they brought in more money from selling fewer goods.
Nestlé and Procter & Gamble, two of the world's largest consumer-facing companies, continued to raise prices last quarter, generating higher sales even as shoppers cut back on the amount of cereal, yogurt, detergent and other goods they bought as inflation squeezed their wallets, the companies reported on Wednesday. Executives also said that the prices would remain high in the coming quarters.
Nestlé, the Swiss conglomerate that owns Cheerios and Kit Kat, raised prices by 9.5 percent in the third quarter versus the same period last year, up from a 7.7 percent increase in the previous quarter. The effect of accelerating prices was reflected in a small decline in the volume of goods sold in its latest quarter, the first fall in years.
“The challenging economic environment is a concern for many people and is impacting their purchasing power,” Mark Schneider, Nestlé’s chief executive, said in a statement. The company said that it expected its profit margin for this year to come in at 17 percent, down from 17.4 percent the year before. It said that revenue for the year would rise by 8 percent, slightly higher than previously predicted.
Procter & Gamble, the maker of Crest toothpaste and Charmin toilet paper, raised prices by 9 percent in its latest quarter, while sales volumes fell by 3 percent. The company’s third-quarter profit was just under $4 billion, about 4 percent lower than the previous year.
The company, which is based in Cincinnati, said that profit growth for its current fiscal year was likely to be close to flat, held back by $600 million in extra costs it had not expected last quarter resulting from higher commodity and freight costs and the strong dollar.
The results from the consumer giants show how rising costs of raw materials, labor and transport feed through to higher sticker prices for a range of products in stores, a factor behind rapid inflation in the United States, Europe and elsewhere. Shoppers have cut back on some purchases, but Nestlé, Procter & Gamble and other consumer giants, like PepsiCo, have recently revealed more robust earnings than many expected.
This creates a challenge for the Federal Reserve and other central banks, which are on a campaign to bring down inflation by cooling their economies via higher interest rates.
Nestlé’s shares fell slightly in Zurich on Wednesday, while Procter & Gamble’s rose more than 3 percent in New York.
"come" - Google News
October 19, 2022 at 10:08PM
https://ift.tt/8VbXlj2
Consumer Giants Keep Raising Prices as Profits Come Under Pressure - The New York Times
"come" - Google News
https://ift.tt/BbcIKOC
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Consumer Giants Keep Raising Prices as Profits Come Under Pressure - The New York Times"
Post a Comment