NSRGY - Nestlé S.A says it will examine banking relationships consider more price hikes

2023-03-28 07:40:57 ET

Nestlé S.A. ( OTCPK:NSRGY ) confirmed on Tuesday that it will examine its banking relationships following the planned takeover of Credit Suisse debacle.

The food giant was a client of Credit Suisse for decades before the bank collapsed. "You can see from such an example that Switzerland as a business location and a financial centre are very closely linked. We now have to see how to reorganise our banking relationships, both with Swiss and international providers," noted Chief Executive Mark Schneide.

Looking ahead, Schneider said further price increases by Nestle ( OTCPK:NSRGY ) could be in the mix even with the company off to a good start to the year. Nestlé S.A. ( OTCPK:NSRGY ) hiked prices by 8.2% on average in 2022. Schneider said Nestlé S.A. ( OTCPK:NSRGY ) still has a goal for a full-year underlying trading operating profit margin target of between 17% and 17.5%.

Earlier in the year Nestle, Mark Schneider said further price increases are necessary to offset the impact of increased commodity prices. He pointed to higher costs in the U.S. and U.K. in particular, while China and Europe were noted to have moderating inflation trends in play.

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