Unilever beats sales estimate as big rise in price fuels Q1 growth
By Joseph Ekeng
Unilever, one of the world’s largest consumer goods companies, has announced that its sales for the first quarter of 2023 have beaten market estimates, despite recent rise in prices.
According to a report on Reuters, Unilever reported a 10.5% rise in underlying first-quarter sales to 14.8 billion euros ($16.4 billion), beating analysts’ average forecast for a 7.2% increase, according to a company-provided consensus.
That included a 10.7% increase in prices and a 0.2% dip in volumes. Price growth was slower versus the previous two quarters, and down from a record 13.3% reported in February, while the decline in volumes improved from the 3.6% drop posted at that time.
The company recorded sales growth despite another big rise in prices The 10.7% increase in prices was, however, lower than in recent quarters, adding to signs inflationary pressures might be easing as input costs declined.
The report noted that packaged goods companies have been hiking prices as they grapple with a surge in costs of everything from sunflower oil and shipping to packaging and grain.
Consumers have so far coped with the cost-of-living squeeze better than many analysts’ had expected, but some warn companies could eventually take a hit to margins if shoppers start switching to cheaper brands in greater numbers.
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