May 21, 2024

News Collective

Complete New Zealand News World

Nestlé, PepsiCo, Unilever and Procter & Gamble are slowing price increases

Nestlé, PepsiCo, Unilever and Procter & Gamble are slowing price increases

Nestlé, PepsiCo, Coca-Cola, Unilever and Procter & Gamble continue to raise interest rates, but at their lowest level in two years and, overall, below double digits. The moderation is less severe in Europe.

Consumer product prices continue to risebut the last two quarters of the year have done so in Much lower speed -especially between July and September-, which already shows A A sharp slowdown in inflation Which It should become clearer in the coming monthsas shown in the latest accounts Nestle, PepsiCo, Procter & Gamble, Unilever, Coca-Cola, Danone or General Mills.

“We expect tailwinds of approximately $800 million for fiscal 2024 due to more favorable commodity cost conditions.”He pointed out Procter & Gambleowner of Ariel, Dodot or H&S in its results for the first quarter (from July to September) of the year.

“The environment shows Softer inflation, stable supply chains, and a resilient but cautious consumer“, Indicates General millsWith brands such as Häagen Dazs, Old El Paso or Gigante Verde. “Price increases will continue to be moderate,” he says. Unileverowner of Dove, Knorr or Magnum.

The calculations of the companies that set the pace for the mass consumption sector speak for themselves. After two years of an inflationary spiral in which prices did not stop rising, The first quarter of this year showed stabilization in interest rates, and since then, there has been an increasingly pronounced slowdown.

This does not mean that prices are no longer rising, because they are continuing to do so.. Nor have the challenges disappeared, because Rates are still highEspecially compared to a period in which increases were in the double digits. but There is a respite in sight, the inflation peak has passed, and the horizon points to greater stability.

See also  Global GDP will reach $100 trillion in 2022

Nestlé brakes

NestleThe largest food company in the world, with brands such as Nespresso, Maggi or Nesquik, It grew 7.8% organically in the first nine months of the yearafter Raising its prices by 8.4% and reducing its sales volume by 0.6 points.

However, the development of their prices has changed significantly. The Swiss group raised interest rates by 10.1% in the fourth quarter of 2022, and since then its prices have risen at a much slower rate.. The increase was 9.8% between January and March; It has been reduced to 9.1% between April and June; And suddenly braked up 6.3% between July and SeptemberThis represents the lowest rate of increase since the first quarter of 2022 (+5.2%).

He noted a few days ago that “we continue to exceed historic inflation levels.” Mark Schneider, CEO of Nestlé. But he added two ideas that represent change: “Our volumes and sales mix are recovering.” Above all, “We expect them to become the main driver of growth in the latter part of the year.”

PepsiCo is slowing down

Although it maintains higher inflation levels than Nestlé, PepsiCo It is another company that has already shown a change in trend. Stability of increases in owner prices of Pepsi or Lays during the first half of the year (+16% and +15%)while In the third quarter, rates increased by four points less (+11%).This represents the lowest level of growth since the first quarter of 2022 (+10%).

“We continue to focus on cost management initiatives,” said Ramon Laguarta, CEO of PepsiCo., when viewing the latest group results. In addition, he added, “We see a gradual improvement in volumes.”

Unilever Track Track

Unilever It presented its results for the third quarter last Thursday Your organic sales -Deducting the impact of currency and corporate operations- It grew by 5.2% to reach 15.2 billion. Price increases contributed to growth by 5.8 points, and volume decreases subtracted 0.6 points.

See also  Over 230 million emails exposed after Twitter accounts hacked - NBC Bay Area

This is the group’s smallest price increase since the fourth quarter of 2021, but the figure is also representative Nearly half of the 10.7% that rates increased in the first quarter of this year This is a number significantly lower than the 8.2% in the second quarter.

Procter & Gamble and General Mills

Procter & Gamble It began its 2024 fiscal year – from July to September – with Sales growth of 6% after raising prices by 7% and reducing sales volume by 1%. about him For the second consecutive quarter in which its prices rose by 7%, compared to a 10% rise in the previous two quarters. Although its volumes are still negative, the one-point decline in the last quarter is a far cry from the situation witnessed last year, when the group recorded a decline in its sales in terms of volume of up to six points in some quarters.

Something similar has happened to General mills. Its sales grew 4% in the first quarter of its fiscal year that ended in August, after raising its prices by 6% and losing 2 points in volume.. In its case, the 6% increase in interest rates represents the smallest increase the company has had in seven quarters The first time their price rise has been less than double digits since the end of 2021.

Containing the increases also had an impact Positive effect on your storage units. Although it is down 2 points, it represents a much more limited decline than that recorded in several quarters last year, when there was a 12-point decline.

See also  Kia K4: The replacement for the Cerato makes its debut in New York

Coca-Cola, slow down

coca cola It also slows price increases, but in a more moderate way. Its 9% rise in the latest quarter is only one point lower than the previous quarter (+10%) and two points lower than at the beginning of the year (+11%).Although it represents the smallest increase since the first quarter of 2022 (+7%). In your case, this is because Not only have their volumes not decreased, they are on the rise -Two points in the last quarter-.

Other multinational companies also showed moderation in their price increases. Danone It closed the third quarter of 2023 on roughly flat volumes, after that Their prices rose by 6.6%, compared to 8.7% in the second quarter and 10.3% in the first three months of the year.

Kraft Heinz raised prices by 11% in the second quarter, its smallest increase in a year And a half, and Heineken He pointed out that “prices have begun to moderate, while quantities are improving.”

Europe is slowing down

Although the moderation of price increases is a general trend, it has a specificity that makes it In markets like Spain, it is not valued as strongly: Europe has much higher inflation levels than other regions.

Coca-Cola prices rose 9% in the last quarter, but rose 19% in Europe, the Middle East and Africa (Europe, Middle East and Africa), compared to 1% in Asia or 5% in North America. Europe is also the continent with the highest inflation rates in the case of Nestlé or PepsiCowhich expects consumers on the continent, including It will take some time for the Spaniards to notice the change in trend.