world’s largest food company
Prices rose the most in North America, by 9.8%, followed by Latin America, by 9.4%, Nestlé said in a statement on Thursday.
Rising costs for merchandise, packaging, freight and energy have impacted the company’s operating profit margin, Nestle (NSRHF)
“We have limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and improved operational efficiency,” said CEO Mark Schneider.
Despite higher prices, the company, whose brands include KitKat and Nescafé, increased its organic sales 8.1% over this period due to strong demand for Purina pet food.
Soaring global inflation
increased the costs of the world’s largest producers, which then passed them on to consumers. Unilever (UL)
one of Nestlé’s competitors, said on Tuesday it had increased prices by an average of 9.8% in the first six months of the year.
Higher prices also contributed global food insecurity
exacerbated by Russia’s invasion of Ukraine in February. The war raised the cost of energy and basic goods to record highs. extrusion from poor countries
that depend on imports.
The good news is that global food prices have fallen for three consecutive months, according to the UN Food Price Index, although they have remained stagnant. 23% higher in June
compared to a year earlier.
The World Food Program (WFP) estimates that 47 million people have gone into acute hunger as a result of the war in Ukraine.
Last week Russia and Ukraine signed a deal
this will allow the export of grain and oilseeds from Ukrainian Black Sea ports to resume after several months of blockages.
— Yulia Horowitz, Rob Picheta, Jomana Karadsheh, Radina Gigova and Tim Lister contributed reporting.