Unilever's sales rise as consumers swallow higher prices

Unilever said it’s still pushing up prices as it faces the biggest cost surge in decades with “truly unprecedented” inflation hitting many of its key markets.

The maker of Dove soap and Surf detergent said it is charging shoppers more for products to help offset its own surging costs as it forecast that sales growth will exceed a previously stated range of 4.5 per cent to 6.5 per cent. In a sign that some shoppers are prepared to accept higher prices for consumer products, Unilever said its full-year operating profit margin will be about 16 per cent which is within its guided range. 

The stock rose as much as 3 per cent in London. 

Unilever is among consumer-goods makers performing a careful balancing act as they seek to pass on some price increases to customers without deterring shoppers too much. The company warned earlier this year that it’s facing the worst inflation since the financial crisis and that it will take two years to return to 2021’s profitability level.