Skip links

Unilever and the inflation storm

Rising inflation forced Unilever to apply a price increase policy right in the first quarter of 2022 and there have been positive signs

After the release of financial results for the first quarter of 2022, in the home care services segment, sales decreased by 2.9% but were offset by a 12.5% ​​increase in prices, thus boosting business growth the base number is 9.2%. Overall sales increased by 7.3%, which prices increased by 8.3% and sales volume decreased by 1%.

During a call with investors at the end of April, Unilever CEO Alan Jope said: “Our strategy is to increase prices aggressively to ensure business results.

This will help us to have the ability to invest more heavily in the brands and businesses of the group.”

Graeme Pitkethly, Unilever’s Chief Financial Officer, also shared: “Sales in emerging markets such as Latin America and North America grew steadily.

However, sales in Europe only increased by 0.7% due to a drop in sales. The UK was identified as one of the few countries in Europe where sales fell all over the place.”

In the face of the price crisis and rampant inflation, Graeme Pitkethly said Unilever’s brands are still “breathable” than others. To further develop business results, the group will continue to conduct valuation activities. Unilever expects to achieve core sales growth in 2022 of 4.5% to 6.5%.

 Besides, Unilever’s e-commerce segment has increased from 2% of total revenue in 2016 to 14%. Alan Jope said the company is designing products that incorporate e-commerce: “Unilever is doing well in a challenging inflationary environment. We’ll keep this pace going to improve growth. and the group’s competitiveness. At the same time, Alan Jope also promised to maintain a strong investment in the communication activities of 13 leading brands of the group. These brands are worth more than 1 billion euros and have grown by 8.8% in the first quarter.

Source: Advertising Vietnam