Nestle says further price hikes ahead, integration of Novartis units on track |
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Thu, 18 Oct 2007 08:56
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ZURICH (Thomson Financial) - Nestle SA said it expects the market for raw materials to remain tough in 2008 making further price hikes in the coming months likely.However, recent raw material price developments are not out-of line with previous expectations, Nestle head of investor relations Roddy Child-Villierssaid.Earlier, the Swiss food giant reported nine-month sales of 78.7 bln sfr up from 72.2 bln in the same period last year as price increases managed to offset rising input costs.Looking ahead, the group expects price rises to continue to more-than-offset rising commodity costs, Child-Villiers said.However, in some markets the potential for further price hikes was limited prompting additional measures.'We are looking at the total cost base of business, such as opportunities to cut packing costs, general efficiency programmes and alternative receipts,' he said.Turning to Nestle's acquisition of Novartis AG's Gerber and Medical Nutrition businesses, Child-Villiers said the early stages of integration were positive in terms of both top and bottom line.johanna.treeck@thomson.comjmt/ejbCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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