Nestle CEO Mark Schneider said on Thursday that the global food group behind KitKat, Nescafe and Purina will raise prices again this year. The announcement came after the release of an annual earnings report that showed the company's highest sales growth in 14 years, while higher costs from inflation ate into profit margins.
"Our gross margin is down about 260 basis points - that is massive. That is after all the pricing we have done in 2022," Schneider said during a press conference.
The company raised prices 8.2 percent in 2022, which is higher than the 6.5 percent annual inflation rate in the consumer price index (CPI). While the price hikes didn't hurt overall sales, which rose 8.4 percent, volume was flat. Whether this "volume weakness" persists into this year is the big question facing the company.
Schneider noted that inflation has been more severe in the U.S. than in Europe or China. Prices were up 11.6 percent in North America, compared to 6.4 percent in Europe and 2.5 percent in China, while sales in North America were nearly triple those areas.
He added that inflation has started to slow for some products, but that overall the company's forecast suggests more cost pressure ahead.
“There are a few cost items that have started, on a spot basis, to ease since the autumn — arabica coffee, dairy, some of the energy items — but on a full-year basis we’re still looking at a very bleak picture," he said.
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
