Member access

4-Traders Homepage  >  Shares  >  Swiss Exchange  >  Nestle SA    NESN   CH0038863350

NESTLE SA (NESN)

308
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Nestle SA : Nestle Expects Raw Material Price Pressure To Ease

04/20/2012 | 07:16am US/Eastern

Swiss food giant Nestle SA (NESN.VX) Friday said it expects pressure from high raw materials prices to ease during the second half of 2012, but is sticking to its forecast of low- to mid-single-digit inflation for the year.

The maker of Nescafe instant coffee and Kit Kat chocolate bars is one of the world's biggest buyers of sugar, coffee and milk, spending around 35 billion Swiss francs ($38.4 billion) a year on ingredients and packaging.

Last year it said its bill for ingredients would rise by up to CHF3 billion as the United Nations' Food and Agricultural Food Price Index, which covers meat, dairy, cereals, oils, fats and sugar costs, reached record levels before falling back in the second half of the year.

"We are still seeing an impact on our business from the 2011 raw material pressures," Roddy Child-Villiers, the company's head of investor relations, said on a conference call Friday.

Although spot prices for cocoa, sugar and other materials have declined in recent months, Child-Villiers said there was a time lag of several months and this was reflected in Nestle's business.

"Any benefit from raw materials would be felt more in the second half," Child-Villiers said.

"We still expect lower- to mid-single-digit input cost inflation for the year as a whole."

-By John Revill, Dow Jones Newswires; +41 43 443 8042; john.revill@dowjones.com

React to this article
Latest news on NESTLE SA
2d ago NESTLE : Nestlé Mexico to sell ice-cream assets to Grupo Herdez
3d ago NESTLE : Nestlé to open first Nescafé Dolce Gusto factory outside of Europe
12/11 NESTLE : Nestlé Skin Health partnership to address growing skin health needs
12/01 NESTLE : Nestlé CEO to address UN Annual Forum on Business and Human Rights
11/28 Fresenius set to walk away from Danone unit - sources
11/28DJPalm Oil Could Put Cash In Hand -- Barron's Asia
11/27DJL'Oreal and Nestle Close Joint Venture Inneov
11/27 Nestle and L'Oreal to end Inneov joint venture in 2015
11/27 NESTLE : L’Oréal and Nestlé announce the project to end the activity of th..
11/27 UK plastic packaging maker RPC to buy Iceland's Promens
Advertisement
Chart
Duration : Period :
Nestle SA Technical Analysis Chart | NESN | CH0038863350 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF