The pet food and meat substitutes of food company Nestlé are bought more than a year ago. According to experts, this may be because people were at home more, cooked, and took a pet more often due to the corona pandemic.
Sales of Felix cat food and Garden Gourmet meat substitutes fueled stronger growth for the Swiss company between January and September.
Nestlé, like many other companies, has to deal with higher raw material prices. In addition, the global supply chain is under pressure due to, among other things, restrictive measures following virus outbreaks in Asia and staff shortages. Nevertheless, the group’s margin does not suffer because Nestlé increased its product prices in the past quarter.
At the same time, the reopening of the hospitality and tourism sectors, among others, has resulted in an increase in revenues from Nestlé products ‘out of doors’. Starbucks and Nescafe coffee were also popular, according to the company. On the other hand, pizzas and Maggi’s seasonings grew less strongly after a strong increase last year.
The results are the reason for Nestlé to increase the expected turnover growth for the entire calendar year. Compared to last year, the company now expects a turnover growth of 6 to 7 percent.
Turnover in the third quarter was almost 4 percent higher than a year earlier. Nestlé earned more than 63 billion Swiss francs in the first nine months of this year. That means an increase of almost 7 percent compared to a year earlier.