Nestle, the food and drink giant behind Nespresso and KitKat, has confessed to a slump in revenue growth after shoppers were put off by its price increases.
The Swiss firm declared yesterday that it saw organic growth of 7.2 percent in 2023 compared with the previous year, although this was spurred mainly by a 7.5 percent hike in pricing as volumes dropped.
This revenue growth was below what market analysts had expected.
Looking forward, Nestle forecasted organic growth to be slower this year, around 4 percent, thanks to lower levels of price inflation.
Despite this, the firm is planning to focus on enhancing profits and driving up volumes for the year.
In Europe, Nestle declared an 8.2 percent rise in organic sales for the year helped by a significant 10.6 percent leap in prices.
The company enjoyed robust demand for Purina PetCare items, like Felix and Gourmet.
Alongside this, they experienced “high single-digit growth” in confectionery sector with KitKat bars selling well.
The company’s Boss, Mark Schneider, stated: “Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products.”
“In this challenging context, we delivered strong organic growth and solid margin improvement with increased marketing and other growth investments. Our free cash flow generation returned to historical levels.”
“Looking to 2024, we are prioritising volume and mix-led growth with increased brand support, as we enhance value for consumers through active innovation and renovation, premiumisation, affordability and more nutritious options.”
