- Anglo-Dutch consumer products giant Unilever plc (LON:ULVR) today revealed that it is raising prices around the world, in response to rapidly rising costs.
Q3 2021 hedge fund letters, conferences and more
- Overall, the group reported sales growth of 2.5% for Q3 and said that they were on course to hold margins broadly level for the full year, even as Unilever described cost pressures remaining “elevated”.
Unilever's Resilience
Commenting on Unilever’s results, Steve Clayton, HL Select fund manager said:
“These results show Unilever’s resilience, with a solid outcome in an especially challenging quarter. Price pressures, shortages and ongoing Covid-related disruption are all combining to create a tough backdrop. But Unilever is managing its way through. Asian end-markets are suffering from a further surge in the pandemic, whilst European sales are held back by declining sales of Home Care products as the local impact of the pandemic wanes.
The group has been raising prices to defend its margins against a panoply of higher costs. It is encouraging to see the group able to push these through, but at some cost to sales volumes in the quarter. Some analysts were forecasting a hit to margins. The stock’s reaction in the market this morning, where it is up 0.9% in early trading, is as much about relief that the numbers were not worse, as it is a vote of approval for the figures themselves.
All too easily overlooked is the group’s dividend. Unilever declared a quarterly pay-out of 35.98p per share for the quarter. The group paid dividends throughout the pandemic, demonstrating the sheer strength of the business, which comes from selling millions upon millions of everyday products to consumers all around the world, each and every day.”
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