UNILEVER HIKES PRICES BY 8 PER CENT
UNILEVER has hiked its prices by more than 8pc as it passes on soaring costs to consumers.
In the first three months of the year, the Magnum ice cream and Hellmann’s mayonnaise maker said it was grappling with ‘unprecedented cost inflation’, exacerbated by war in Ukraine.
And the consumer goods giant warned inflation is set to raise prices further. It posted a 7.3pc increase in first-quarter sales, with an 8.3pc rise in prices more than offsetting a 1pc fall in goods sold.
The company said price rises were especially high in home care, at 12.5pc, and personal care, at 7.4pc.
But as business costs soar full-year profit margins would be ‘at the bottom end’ of its previously guided 16pc-17pc range. Sales last year hit £44bn, with a 16.6pc margin that saw profits come in at £7.3bn.
The update sent shares up 2.7pc, or 97.5p, to 3675p – but the stock remains down 7pc this year.
Bernstein analyst Bruno Monteyne said he was surprised Unilever was able to raise prices so significantly and only suffer a 1pc sales drop.
Unilever was helped in part in demand for ice cream. Chefs also bought its products following the reopening of restaurants.
The company employs 149,000 people worldwide with 6,000 in the UK and Ireland.