The company is growing the value of its sales by more than expected but admits consumers are likely to be more wary globally as the threat from inflation damages household budgets.
The figure suggests resilience in the company's battle to mitigate the impact from rising costs though customers, such as supermarkets, have been resisting the pace of price increases demanded by consumer goods firms.Unilever's ice cream line-up includes Magnum and Twister. Pic: Newscast Limited via AP ImagesGrocery industry research suggests more customers than ever before are seeking out supermarket own-brands.
A report by NielsenIQ released on Tuesday showed that spend per visit was down 5% during the four weeks to 16 July as shoppers continued to make trade-offs in a bid to cut their bills.It said 90% of people in the UK were increasingly watching what they are spending amid thecrunch, with inflation at 40-year highs and only tipped to accelerate in the months ahead.
Nevertheless, Unilever said it expected to beat its previous forecast for full-year underlying sales growth of 4.5% to 6.5%.Matt Britzman, equity analyst at Hargreaves Lansdown, said of the performance:"Having a host of strong brands is essential if any business wants to pass on rising costs, and Unilever has those up its sleeve - the ability to raise prices just shy of 10% and only have a 1.6% drop in volumes is a good place to be.
But he added:"There's a limit to how much someone will pay for a Magnum though, and we've heard from supermarkets that shoppers are now starting to slide down the value chain in an attempt to keep shopping lists intact.
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