Higher ingredient costs had a minimal impact on the first-half results of this year for the food and personal care group Unilever. After all, the company behind brands like Knorr, Ola, and Dove has raised their prices, too. As a result, fewer products were sold, but with an increased balance turnover.
Profit margin decreased slightly due to higher purchase prices. Despite everything, net profit has remained broadly stable. It rose from 3.4 billion euros in the first six months of last year to 3.2 billion euros this year. Operating profit was higher this half year than last year.
Overall, Unilever expects to have to swallow €4.6 billion in additional costs due to inflation this year. “It’s really invisible,” said CFO Graeme Pittkethley.
The group expects sales growth this year, which will be higher than the previously announced increase of 4.5 percent to 6.5 percent. Operating profit margin fluctuates around 16 percent.
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