April 18 (Bloomberg) -- Nestle SA, the world's largest food company, will probably report an increase in first-quarter revenue after raising prices by the most in a decade.
Sales rose 4.5 percent to 25.35 billion Swiss francs ($25 billion) from 24.25 billion francs a year earlier, according to the median estimate of seven analysts surveyed by Bloomberg News. The Vevey, Switzerland-based maker of Nescafe and Jenny Craig diet meals reports on April 21.
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Because of increase commodity costs to produce the many diverse products Nestle makes, the company raised prices by 3% on average since 2007. Nestle's competitors were not able to offset the commodity costs and are expecting a drop in 2008 income. Oh well, people are willing to pay for anything Nestle. Name recognition, good products and world wide appeal for now until another corporation comes along makes Nestle always the winner.
1 comment:
The shareholders must be happy. I wish I was one. I should have bought Nestle when the price was low now the price is $125.00 a share. I am sure people said the same thing about Berkshire Hathaway. Of course you can't compare the two companies share wise. I rather own Berkshire.
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