Nestle Pakistan Increases Prices of Products by Up to 20%
Nestle Pakistan, the Swiss multinational food and beverage company, has increased the prices of its products across Pakistan. The price hike, which comes into effect today, June 22, 2023, ranges from 10% to 20%.
Nestle Pakistan cited rising input costs as the reason for the price hike. The company said that the cost of raw materials, packaging, and transportation had increased recently.
The price hike will affect various Nestle products, including Milo, Nescafe, KitKat, Maggi, and Nido. The price increase will vary in its exact amount. Depending on the product.
This is not the first time Nestle Pakistan has increased the prices of its products. In January 2023, the company raised prices by up to 15%.
The price hike by Nestle Pakistan is likely to put further pressure on household budgets in Pakistan. The country is already facing high inflation, currently around 13%.
Nestle products in Pakistan
The price hike is also likely to impact the sales of Nestle products in Pakistan. Some consumers may switch to cheaper brands, while others may reduce their consumption of Nestle products.
How the price hike will affect Nestle Pakistan’s bottom line remains to be seen. The company has said that it expects the price hike to have a “minimal impact” on its financial performance.
However, the price hike will likely be a source of concern for Nestle Pakistan’s shareholders. The company’s shares have been trading down in recent months as investors have become increasingly concerned about the impact of rising inflation on Nestle’s business.
The price hike by Nestle Pakistan is a reminder of the challenges facing businesses in Pakistan. The country’s economy is struggling, and inflation is rising. This is making it difficult for businesses to maintain their margins.
It remains to be seen how businesses in Pakistan will cope with the rising cost of doing business. However, the price hike by Nestle Pakistan’s is a sign that businesses are starting to pass on the rising costs to consumers.