Connect with us

Hi, what are you looking for?

Business

Marmite and Dove maker Unilever warns of more price rises this year

Unilever, the company behind brands including Marmite and Dove soap, will continue increasing prices for consumers this year after higher price tags on detergents, soaps and packaged food helped the company beat sales forecasts for 2022.

The London-headquartered company warned that “underlying price growth would remain high” in the first half of the year, and that it expected consumers to buy fewer items as a result.

It comes as the consumer goods giant – which also owns Hellmann’s mayonnaise, Magnum and Ben & Jerry’s ice-cream – tries to recoup its own rising costs, including ingredients for its products, which soared as the result of surging energy costs linked to Russia’s invasion of Ukraine.

Unilever said it was likely to sell more items once price rises started to ease, but warned it was “too early to say” whether that would result in positive growth in the volume of sales in the second half of the year. Overall, it is expecting underlying sales growth of at least 3%-5% for the full year.

The forecasts come after Unilever reported underlying sales growth of 9% for 2022, higher than the 8.2% increase that analysts had expected. Unilever said the strong performance was “driven by disciplined pricing action in response to high input cost inflation” in the middle of challenging economic conditions.

It followed an 11.3% rise in the prices of its goods over 2022, though the volume of sales fell 2.1%, suggesting consumers were put off by the higher prices and bought fewer goods.

The company’s home care division – which includes Domestos bleach – was one of its strongest performers, recording a 12.3% rise in sales, after price increases for fabric cleaners which experienced the largest increase in input costs.

Unilever insisted that “it carefully balanced price growth, volume and competitiveness” to navigate surging inflation last year. It helped the company report 14.5% rise in overall turnover to €60bn (£53bn), though annual operating profit only grew 0.5% to €9.7bn.

The chief executive, Alan Jope, who will leave the company in the summer, said the company was making progress in its corporate turnaround. “There is more to do, but the changes we have made mean that we start 2023 with momentum, setting us up well for delivering another year of higher growth, which remains our first priority,” he added.

Read more:
Marmite and Dove maker Unilever warns of more price rises this year

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    Since the rise of online casinos, cybersecurity has become a major concern for both casino operators and players alike. The transactions that go around...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 rightdecisionnow.com | All Rights Reserved