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Nestle’s profits in the UK soared last year as the consumer giant raised prices and shoppers spent more on its products during repeated pandemic lockdowns
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Nestle’s profits in the UK soared last year as the consumer giant raised prices and shoppers increased spending on its products during repeated pandemic lockdowns.
According to new documents, sales at the maker of KitKat, Nespresso and Haagen-Dazs ice cream rose to nearly £2 billion, while profits doubled to £243 million.
Following the bonanza, the division paid its Swiss parent company a dividend of £180.7 million.
Surge: Nestle has raised prices to cope with rising raw material, energy and transportation costs
Nestlé has raised prices to cope with rising raw material, energy and transport costs.
Group chief executive Mark Schneider warned of further price hikes this year.
In July, he blamed “significant and unprecedented cost inflation” for a 6.5 percent price hike in the first half of the year. At the time, Schneider said it was a “safe assumption” that costs would be higher this year than in 2021 in a “super volatile environment.”
“That’s something we need to reflect in our pricing,” he added.
Other consumer giants have successfully ushered in significant price increases, including Kraft Heinz and Reckitt Benckiser, which make Dettol and Nurofen. Both companies have increased their prices by more than 10 percent, boosting their sales figures.
Unilever said in July it had raised its prices by 11.2 percent and expects further increases this year.