Increasing Nestle Flags Price as tariffs, goods weighs in the fields

Swiss food giant Wilderness On Thursday, it is said that the prices for their Kitkat bars and Nespresso coffee pods can increase further this year, as US tariffs risk exacerbating existing commodity pressure.

CEO Laurent Fraste said he was “satisfied” to raise the prices realized in the first half of the year, but stated that the company was still considering whether additional actions would be required throughout the products.

“Will we need a little more (prices)?” Freixe said the earnings were in response to a question about pricing.

“We may need a little more, but most of them have already been done and will see what is reflected in the following quarters.”

Nestle shares decreased by 4.9% to 10:50 in London (5:50 am et).

The world’s largest company in the packed goods has posted more than expected, in the first half of organic sales growth because it relied on raising prices to offset higher costs for their coffee and cocoa production.

Organic sales growth in NESCAFE and PURINA owner increased 2.9% over the six months before June, the highest on analysts’ forecast by 2.8%. This was headed by 2.7% price increase, which is a bit ahead of 2.5% of the company’s consensus analysts’ forecast.

“We face an unprecedented scenario when two of our major goods reached historical highs,” Freix said, citing coffee and cocoa costs.

“We obviously had to take action. As a leaders in the field, we had to take measures quickly,” Freix added.

The total Nestle sales decreased by 1.8% over the period of 44.2 billion Swiss francs ($ 55.7 billion), which is slightly more than the expectations of analysts at 44.6 billion Swiss francs. The main trading operating profit (UTOP) margins decreased by 0.9% to 16.5%.

Chief Financial Director Anna Mantsz said in the first half of the campaign faced currency fluctuations, due to a stronger Swiss franc and minimal early effects from the US tariffs. However, she said she expected these winds to deteriorate in the second half.

“According to her, the second half will be much lower than the first half, noting that the price increase will” be more than offset by the increase in contributions, tariffs and FX (foreign currency). “

The company, however, retained its recommendations in 2025 for the growth of organic sales to improve against 2024 and for the main trading operating margin of profit in 16% and above.

Nestle stock lagged from major competitors such as Type and Danon In recent years, against the backdrop of weaker sales and revised recommendations, even when the sector as a whole is under pressure from higher goods and increased competition of private labels.

Freixe who took the helm in September promised to refocus the business, saying Many acquisitions under his predecessor “weakened the fabric” of the company.

“With the help of our six” big rates “we follow the less, big, best approach,” Frascu said on Thursday.

Six “big rates” Nestle refer to their priority products: these include its infant formula 9, Nescafé Espresso, Air Fryer Range, Chocobakery, Pyramid Pyramid Purina, and Nescafé Dolce Gusto NEO.

Meanwhile, the company said it conducts a strategic review of some of its insufficient vitamins, including nature, Osteo Bi-Flex, noting that this could lead to deprivation.

“All this corresponds to our approach in the focus and simplification group,” Frasc added. “Today we take the right actions to strengthen our ambitions for the future.”