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Big companies manage to pass on soaring costs to cash-strapped consumers

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Some of Europe's biggest companies report sales increases for the first quarter of 2022, with Nestle, Danone, and Akzo Nobel saying they were able to accomplish the gains while raising their prices.

, and Dulux paint maker Akzo Nobel saying they were able to accomplish the gains while raising their prices.

But while cheering investors, with Nestle, ABB, and Akzo Nobel enjoying share price gains, the strategy is stirring worries about households’ ability to cope and the outlook for the rest of the year. Nestle beat a 5% average forecast for the sales measure that strips out currency swings and M&A deals in a company-compiled consensus thanks to price increases of 5.2%.

The world’s biggest yogurt maker benefited from price increases at the start of the year as well as easier comparisons and stronger demand for baby formula in China.

 

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