Unilever raises prices as commodity costs climb amid Iran conflict
Unilever says higher prices helped drive its sales growth in the three months to September 30, as rising commodity costs linked to the Iran conflict squeeze the consumer goods sector.
Consumer goods group Unilever is raising prices for its products as the cost of raw materials climbs, a move that helped lift its sales in the latest quarter. The company revealed that underlying sales grew by 5.2 per cent in the three months to September 30, of which 2.3 per cent came from higher prices rather than higher volumes.
The figures show how manufacturers are passing on pressure from global commodity markets to shoppers. Unilever, which owns household and personal care brands, has been exposed to rising input costs as the conflict involving Iran has pushed up energy and raw material prices. Passing those costs on to customers has allowed the group to protect its revenues, even as demand in some categories remains uncertain.
For households, the development means that everyday staples and personal care products are likely to remain more expensive. Price increases of this kind tend to feed through to supermarket shelves over time, adding to the cost-of-living pressures already facing consumers across Britain and other markets where Unilever operates. The company's ability to lift prices without a corresponding fall in sales will be closely watched by investors and rival manufacturers alike.
The quarter's results underline a wider tension for the sector: firms are relying on pricing power to maintain growth at a time when commodity volatility makes costs harder to forecast. Whether higher prices can continue to support sales without denting demand will be a key question for the business in the months ahead.
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