Unilever price rises expected to continue, world food …
Unilever PLC (LSE:ULVR) and very likely rivals such as Nestle S.A. (OTC:NSRGF, VTX:NESN) and Danone (OTCQX:DANOY) are expected to keep on hiking prices into 2023, according to Barclays. The London-based conglomerate’s prices increased 10.7% year on year in the first quarter, driven mainly by 13.4% hikes in its home care and nutrition divisions. Sales of home care products, which include brands such as Domestos and Cif, jumped 10.2% despite volumes dropping by 2.8%. Nutrition brands like Hellman’s and the Vegetarian Butcher saw volumes drop by 1.3%, but the price hikes were able to counteract this, lifting revenues by 11.9%. Unilever’s beauty and wellbeing brands experienced the smallest price hikes, totalling a 6.5% rise. Personal care product prices also saw smaller hikes, at 9.4%. Conveniently, the volumes of these two categories were the only two to increase, by 3% for personal care and 2.6% for beauty and well-being. Yet, Unilever’s chief executive officer Alan Jope claimed that increases weren’t “profiteering in any way, shape or form”. “None of us want to pass pricing on to the consumer,” he added. Price hikes for the group’s ice cream brands, which include Ben & Jerry’s, are expected to continue as Unilever claims rising costs are squeezing margins. Finance chief Graeme Pitkethly said that he believed dairy prices will be up 22% annually in the first half of 2023.