Nestlé sales miss forecasts as higher prices hit demand

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Nestlé reported lower than expected full-year sales as the world’s biggest food company pinned the blame on a continued squeeze on household budgets.

The Swiss company said on Thursday that organic sales climbed 7.2 per cent last year, trailing the 7.4 per cent forecast by analysts.

Faced with a rise in its own costs, Nestlé has been lifting prices over the past 12 months, though the pace of increases moderated in the second half of the year. Prices rose 7.5 per cent in the second half, matching forecasts, and down from a 9.5 per cent pace in the first half.

“Unprecedented inflation over the past two years has increased pressure on many consumers and impacted demand for food and beverage products,” said Nestlé chief executive Mark Schneider.

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