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Nestlé Anticipating Higher Input Cost Inflation Next Year

Published on Sep 10 2021 7:58 AM in A-Brands tagged: Nestlé / Inflation / Barclays / Costs

Nestlé Anticipating Higher Input Cost Inflation Next Year

Food giant Nestlé expects even higher input cost inflation in 2022 than this year, its chief financial officer has said.

"If we talk of 2022, it is likely that input cost inflation will be higher next year than this year," Francois-Xavier Roger said at a Barclays Consumer Staples Conference.

"Our strategy is to offset anything we receive through pricing. The idea is to pass it on to the trade and to consumers whenever we receive it," he said, adding there would be a delay.

Gaining Market Share

He said the company was gaining market share in most categories and regions, with the exception of infant nutrition in China that wouldn't return to growth this year and frozen pizza due to supply chain constraints.

Roger said the company would continue to be active in portfolio management, but would stay disciplined, targeting mature businesses rather than startups.

He said margin growth would moderate going forward due to investment in sustainability and topline growth. Nestlé will also continue to do share buybacks whenever appropriate.

L'Oréal Stake

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Asked about its stake in French cosmetics group L'Oréal , Roger said, "There is not much to add there. I cannot comment on one specific option regarding our L'Oréal investment ... The board has to revisit all options and we want to keep all options open."

In July, Nestlé reported a 8.1% increase in first-half organic sales, ahead of analyst estimates for the period.

News by Reuters, edited by ESM. For more A-Brands stores, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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