# Unilever Reports Ôé¼30bn in Sales through Price Increases

Marmite and Cornetto-maker Unilever has announced that it generated over Ôé¼30bn (┬ú26bn) in sales over the past six months, primarily through raising its prices. The consumer goods giant witnessed a growth of 9.4% in sales measured by prices, despite a decrease in the number of goods sold.

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# Addressing Supermarket Criticism amid High Inflation

Unilever’s approach of raising prices has been met with criticism from supermarkets, including Tesco, who argue against suppliers inflating their prices during a period of high inflation. However, Unilever stated that it believes the peak of inflation has passed and expects a moderation in price increases by the end of the year.

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# External Factors Impacting Unilever’s Pricing Strategy

Unilever’s chief executive, Hein Schumacher, noted that the company has faced numerous external factors that have caused high volatility and increased costs. These factors include drought in Europe, rice shortages in India, and geopolitical issues leading to elevated raw material expenses.

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# Supermarkets Accusing Suppliers of Price Hikes and Unilever’s Response

Supermarkets, often criticized for “greedflation” where they raise prices beyond necessity, have accused suppliers, including Unilever, of inflating their prices. In response to these allegations, Unilever’s CEO, Mr. Schumacher, emphasized that they have not passed on inflation to customers and highlighted the company’s absorption of higher costs through reduced margins.

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# The Competition and Markets Authority’s Investigation and Unilever’s Performance

The regulator, the Competition and Markets Authority, recently conducted an investigation into supermarket pricing and found no evidence of profiteering. However, they highlighted the importance of monitoring the market and extending the investigation to the broader supply chain.

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# Segment Performance and Future Focus

Unilever’s home care division witnessed a sales increase of 8.4% to Ôé¼6.2bn. On the other hand, the number of goods sold declined by 2.5% over the six months, while prices rose by 11.2%.

In the ice cream business, represented by the Magnum brand, sales reflected a similar trend. The value of sales increased due to price hikes, but the volume of products sold decreased by 5.2%.

Unilever’s other food division, including brands like Hellman’s, experienced a sales rise of 10.4% to Ôé¼6.6bn. However, prices increased by 12.6%, while volumes declined by 1.9%.

Additionally, other businesses such as personal care and beauty and wellness demonstrated growth in both prices and volumes over the past six months.

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# Impact of Food Costs on UK Inflation

Food costs have been a significant driver of high inflation in the UK. In June, the rate of food and soft drink price inflation slowed to 17.4% but remains elevated. Overall UK inflation decreased to 7.9% in June, according to the Office for National Statistics.

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AI legalese decoder can provide Unilever with insights into contract terms and legal language associated with supplier agreements, pricing mechanisms, and inflation-related clauses. By understanding the implications of these elements, Unilever can adapt its pricing strategies and effectively manage the impact of food costs on its financial performance.

# Unilever’s Financial Performance

Unilever reported total sales of Ôé¼30.4bn and a 21% increase in pre-tax profits, reaching Ôé¼5.2bn.

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# Premier Foods’ Performance and Strategy

Premier Foods, known for brands like Mr. Kipling and Oxo, reported a 21% sales increase in the three months ending 1 July compared to the same period last year. The company believes that recent input cost inflation has reached its peak and has committed to not raising prices for the remainder of the year.

## AI legalese decoder for Benchmarking and Competitive Analysis

AI legalese decoder can analyze legal agreements and contracts within the food industry, allowing Unilever to benchmark its pricing strategies against competitors like Premier Foods. By deciphering complex contractual language regarding pricing and cost management, Unilever can make informed decisions to stay competitive while ensuring consumer affordability and maintaining market share.

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