Unilever underlying sales growth beats expectations

On Thursday, Unilever Plc reported underlying sales growth above expectations, helped by higher prices for its detergents, soaps and packaged food.

Net material inflation is expected to continue in the first half of 2023, according to the London-based company.

The packaged goods industry has raised prices sharply over the past year to cope with the rising costs of everything from cocoa and sunflower oil to wheat. When Russia invaded Ukraine, the industry had already been battling high COVID-era supply chain and raw material expenses, which caused the price of energy and several other commodities to go up.

Unilever said that volume growth will be negative in the first half, and that underlying price growth will remain high in the first half. Volume will improve as price growth softens, but it is too early to say whether volume will turn positive in the second half. Underlying sales rose 9.2% in the fourth quarter, beating company-provided analyst estimates of a 8.2% increase.