Unilever has warned that it will implement further price rises in the coming months as the Anglo-Dutch consumer goods group seeks to recover its increasing costs. The company, which owns brands including Marmite, Dove, and Hellmann’s, stated that while the pace of price increases slowed in the second quarter, these were “temporary factors” and would not offer long-term relief to consumers.
The company informed shareholders on Tuesday that it anticipates underlying price growth to accelerate in the second half of the year as “commodity-driven pricing continues to land in market.” Despite cost-of-living pressures, Unilever reported a 5.8% increase in underlying sales in the second quarter, pushing turnover up 3.8% to €13bn (£11.1bn).
Companies like Unilever have been contending with higher costs for ingredients and services, largely attributed to increased oil prices since March. This followed the US-Israeli war on Iran, which reportedly halted tanker traffic through the Strait of Hormuz. Although oil prices have fluctuated amid temporary ceasefires, this has not yet resulted in a sustained drop in prices for manufacturers.