Unilever benefits from price increases - but costs are a burden

29-Apr-2022 - United Kingdom

Consumer goods group Unilever has started the new year with robust growth. Revenues rose by 11.8 percent to 13.8 billion euros, the company announced in London on Thursday. Organically - adjusted for currency and portfolio effects - Unilever achieved growth of 7.3 percent.

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The group benefited from price increases - these contributed more than eight percent to growth. By contrast, sales volumes declined by one percent.

The manufacturer of Langnese ice cream, Pfanni dumplings and Dove soap is sticking to its forecast for the year - but assumes significantly higher costs in the second half of the year than previously. Russia's attack on Ukraine has driven up raw material prices even further, it said. As a result, Unilever now expects costs of 2.7 billion euros for the second half, up from an initial assumption of around 1.5 billion euros. For the first six months, a good two billion euros is still expected. For this reason, the adjusted operating margin in 2022 is likely to be at the lower end of the expected range of 16 to 17 percent.

Unilever intends to respond with further price increases. The consumer goods manufacturer sees organic sales growth this year at the upper end of the expected 4.5 to 6.5 percent. (dpa)

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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