The chief executive of Unilever said the consumer goods maker is facing its fiercest inflationary pressures in a decade as the cost of raw materials, packaging and transport soars.
The warning from Alan Jope came as the maker of Domestos bleach, Hellmann’s mayonnaise and Magnum ice cream reported that its underlying operating margin in the six months to June dropped 100 basis points to 18.8 per cent after cost inflation sped up in the second quarter.
“We are facing very material cost increases,” Jope said. “Our first reflex is to look for savings in our own business to offset these costs, but these are of a magnitude that will require us to continue to take some price increases.”
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