Unilever has reported disappointing sales figures today: in volume, the company sold 1.5 % less than last year. However, a significant price increase did enable total sales to rise. Costs will remain high for some time, so prices may still go up again.
Increased prices
Unilever’s sales rose 4 % to 13.5 billion euros in the third quarter, but that was because of the price increases and acquisitions. The total sales volume fell by 1.5 % as sales in South East Asia, particularly, were under pressure due to the Covid-19 pandemic, Dutch newspaper AD writes.
“Cost inflation remains at strongly elevated levels, and this will continue into next year”, CEO Alan Jope explained when announcing the quarterly results. Jope also added that the group will adjust prices across all categories and markets and implement a range of productivity measures to offset increased costs. Earlier this week, Danone and Procter & Gamble also warned of higher costs and indicated that new price increases are on the horizon.
Alongside the figures, Unilever also reported that the operational separation of the tea division, including well-known brands such as Lipton and Pukka, has been completed. Unilever is now considering the different options for the division, whereby an IPO, a sale or a partnership are still possible.
