Food company Nestlé posted a 6.4 per cent rise in first-quarter sales to €14 billion today.
The Swiss group said its sales in January-March had been boosted partially by wholesalers stocking up in anticipation of price rises. But it warned of a slowdown in profit growth due to rising ingredients costs.
Nestlé said it would pass on some of the costs of more expensive ingredients to customers, pointing to a slower pace of growth in its operating profit margin.
The price of cocoa has climbed close to four-year highs, while grain prices have also risen.
Masterfoods USA, a division of Mars, said earlier this month it was raising the wholesale cost of its chocolate bars - including M&Ms and Snickers - by an average of 5 per cent due to rising costs.
Nestlé chairman and chief executive officer Peter Brabeck said the group's pricing power would allow it to meet its sales and margin targets, although its price hikes were likely to dampen demand.