Unilever Planning to Hike Product Prices Due to Inflation
Consumer goods giant Unilever plans to raise product prices as input costs accelerate in the first quarter of this year. The company, whose products consist of Dove soap, PG Tips, Marmite, and Ben & Jerry`s ice cream, stated it turned into trying to skip extended expenses onto customers no matter having already raised prices more than 8% year-on-year within the last quarter.
As the Ukrainian conflict continues to drive commodity inflation, the group now expects costs to increase by €2.7 billion in the second half of this year. First-quarter sales filled up the impact of exchange rates that were up 7.3% to €13.8 billion, higher than expected, but driven primarily by an 8.3% price increase in-home care.
On the bloc, prices have risen 5.4% over the past three months, resulting in a 4.4% decline in consumer purchases, while in the United States, prices have risen 10% and sales have fallen only 1%. But in Latin America, prices rose 16% and demand fell 5.7%.
Unilever, which lags behind Lipton, Flora, Hellmann's, and Vaseline, now expects underlying full-year sales growth to reach the 4.5% to 6.5% guidance range.