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Unilever has lifted prices on home and personal care products in particular, as the consumer goods group sought to offset soaring costs amid the Iran war. The company, whose brands include Dove soap and Lynx deodorant, said prices had “stepped up” in the third quarter in response to soaring commodity costs. Underlying sales grew by 5.2 per cent in the three months to 30 September, while higher prices accounted for 2.3 per cent of that growth.
Unilever is not the only household goods firm passing on rising costs to shoppers. Reckitt Benckiser said on Tuesday it was increasing prices in the face of higher inflation caused by the Middle East conflict. Unilever is moving to split its food business into a joint venture with US rival McCormick in a £33.8 billion deal announced in March (Reuters) Prices at the fellow household goods firm rose by 4 per cent across Europe in the third quarter.
Unilever said sales growth was not just being boosted by higher prices, as it nudged up its outlook for sales growth by volume. It now expects “at least” a 3 per cent increase over 2026 as a whole. Previously, it had said sales volumes were set to grow by around 3 per cent.
The group also said it now expects underlying sales growth of about 5 per cent in the second half of the year. Its previous guidance for the period was for growth of between 4 per cent and 5 per cent. Unilever said sales growth was not just being boosted by higher prices, as it nudged up its outlook for sales growth by volume Chief executive Fernando Fernandez said: “We have delivered another quarter of competitive growth, led by continued strong volume delivery and a step-up in price to offset the impact of higher commodity costs.” Unilever is moving to split its food business into a joint venture with US rival McCormick in a £33.8 billion deal announced in March.
It will create a major food giant that combines brands such as Unilever's Marmite with McCormick's French's mustard. The group said it was on track for a “timely closing” of the deal, which is expected by mid-2027. “Separation and integration work is progressing well, led by dedicated project teams comprising more than 200 employees across 20 cross-functional teams,” Unilever said.
“There has been strong progress on regulatory approvals, with filings submitted on schedule and clear momentum across jurisdictions, reinforcing our confidence in a timely closing.”
Source: The Independent
