Nestle and Danone Forecast Slower Growth as They Ease Off Price Hikes to Win Back Shoppers
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Nestle made big revenue gains from price hikes during high inflation, but is now forecasting slower growth as prices stabilize.
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To encourage shoppers to buy more branded items again, Nestle and Danone are easing back on price increases.
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Nestle missed 4Q sales expectations due to supply issues in its vitamins business and boycotts in some countries.
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Both companies expanded margins in 2023 and expect further profitability improvements in 2024.
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Danone is trying to bring back sales volumes after a period of shoppers opting for cheaper private label brands.