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Food and commodity inflation is here to stay for a while and remains a cause of concern, said Nestle India Chairman and Managing Director Suresh Narayanan on Thursday.
He also stated that the company is trying to mitigate the impact but can look at some pricing actions in the future if inflation remains unrelenting.
The FMCG maker, which owns power brands such as Maggi, Nescafe and Kitkat, has gone for a price hike recently.
“If the food inflation continues for a long time.. then it can be a cause of concern,” said Narayanan in an earnings call with analysts.
However, he also added, “At the moment the pressure points are felt but it is not that house is collapsing.”
The company has done selective price increases as the food inflation is almost 10 years high.
“We put the price at the last that we need to do. We look at efficiency, strategic buying, portfolio and capacity optimisation and then we come at the issue of pricing. But yes, the price increase has been taken,” he said
Nestle has taken some selective price hikes of 1-2 per cent.
“This could also be a lever that we may need to press in the future, if indeed the level of inflation is unrelenting,” he said.
On the overall sentiment, he said everything is not at sunshine as job losses and some kind of pressure on income, and seeking of value still continue, Narayanan added.
“At Nestle’s portfolio, I have not seen any huge weakness. Consumers are continuing seeking value, good quality and trustworthy brands,” he said.
Nestle India on Thursday reported a 3 per cent increase in its net profit to Rs 2,144.86 crore. Its revenue from operations in 2021 increased 10.18 per cent to Rs 14,709.41 crore.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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