LONDON (Reuters) -Unilever Plc on Thursday reported quarterly underlying sales growth above expectations, helped by higher prices for its detergents, soaps and packaged food.
The London-based company said it expects cost inflation to continue in 2023, forecasting net material inflation in the first half of around 1.5 billion euros.
The packaged goods industry has raised prices sharply over the past year to cope with surging costs of everything from cocoa and sunflower oil to wheat. The industry had already been battling high COVID-era supply chain and raw material expenses when Russia invaded Ukraine, driving up the prices of energy and several other commodities.
“In the first half, underlying price growth will remain high, and volume growth will be negative,” Unilever said in a statement. “Volume will improve as price growth softens, but it is too early to say whether volume will turn positive in the second half.”
Underlying sales rose 9.2% in the fourth quarter, beating company-provided analyst estimates of a 8.2% increase.
(Reporting by Richa Naidu; Editing by Matt Scuffham)
