Unilever Reports Double-Digit Sales Growth Amid Price Rises

Unilever reported a 10.5% rise in underlying first-quarter sales to €14.8 billion, beating analysts’ average forecast for a 7.2% increase, according to a company-provided consensus. That included a 10.7% increase in prices and a 0.2% dip in volumes.

Packaged goods companies have been hiking prices as they grapple with a surge in costs of everything from sunflower oil and shipping to packaging and grain.

Consumers have so far coped with the cost-of-living squeeze better than many analysts’ had expected, but some warn companies could eventually take a hit to margins if shoppers start switching to cheaper brands in greater numbers.

“Unilever has had a good start to the year, delivering another quarter of strong topline growth,” commented CEO Alan Jope.

“We remain focused on navigating through continued macroeconomic uncertainty and are confident in our ability to deliver another year of strong growth, which remains our first priority.”

Unilever reiterated it expected price growth to remain high during the first half of the year, but soften through the year as inflation abates.

ESM