Nestle sees profits surge on back of rising prices

NESTLE’S profits in the UK surged last year as the consumer giant increased prices and shoppers spent more on its products during repeated pandemic lockdowns.

Sales at the maker of KitKat, Nespresso and Haagen-Dazs ice cream surged to almost £2 billion, while profits doubled to £243million, according to new documents.

Following the bonanza, the division paid its Swiss parent a £180.7 million dividend.

Nestle has increased prices to cope with rising commodity, energy and transport costs.

Group chief executive Mark Schneider has already warned of further price increases this year. In July, he blamed ‘significant and unprecedented cost inflation’ for a 6.5 per cent rise in prices during the first half of the year.

Schneider said at the time it was a ‘safe assumption’ that costs this year would be higher than in 2021 in a ‘super volatile environment’.

‘That is something that we have to reflect in our pricing,’ he added.

Other consumer giants have successfully ushered in significant price rises, including Kraft Heinz and Reckitt Benckiser, which makes Dettol and Nurofen. Both companies have increased their prices by more than 10 per cent, boosting their sales figures.

Unilever said in July that it had raised its prices by 11.2 per cent and expected further increases this year.