Energy cost increase will be passed on to consumers

Date: 24.01.2022Source: Il sole 24 ore

“… All European manufacturers are already passing on the cost increases in their price lists,” Filippo Marchi, General Director of Granarolo told the Italian news portal il sole 24 ore. In some countries the impact of the rise in energy costs is less than in Italy, but the high cost of raw materials, from milk to paper and plastic, is being felt everywhere. Marchi admits: “It is no longer possible to cope with the cost increase by optimising internal production processes alone – part of the increase must inevitably be passed on through consumer prices. We have already increased our price lists before January.”

Marchi pointed out that in Granarolo’s balance sheet, costs already correspond to the EBITDA margin. “In the budget for 2022,” he said, “we assumed inflation in electricity and gas equal to 60% of the total cost of the energy bill … But the situation has already deteriorated and what we had planned is not enough.”

Granarolo is forced to sign energy supply contracts from month to month now: “We used to spend 24 euros/MWh, the offers for the next month are between 70 and 75. Not to mention that prices reached over 160 euros/MWh during the Christmas period.”

Roland Sossna / IDM

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