Unilever on Tuesday (Jul 25) reported better-than-expected underlying quarterly sales growth, as the maker of Dove soap and Ben & Jerry’s ice cream again raised prices to make up for higher costs.

The British company reported a 7.9 per cent rise in underlying second-quarter sales, beating analysts’ average forecast of 6.4 per cent, a company-provided consensus showed.

The company said it expects underlying sales growth for the full year to be above 5 per cent, ahead of its multi-year range, with underlying price growth continuing to moderate through the year.

“My early immersion in the business has confirmed my belief in Unilever’s strong fundamentals,” said new CEO Hein Schumacher. These are Schumacher’s first Unilever results, having taken over from Alan Jope earlier this month.

Unilever, which in February forecast net material inflation in the first half of 2023 of around 1.5 billion euros (S$2.2 billion), said at the time it would continue to raise prices in the first half of the year and ease up on those hikes in the second half.

Underlying price growth for the second quarter was 8.2 per cent, while underlying volumes fell by 0.3 per cent, beating analysts’ expectations of 7.7 per cent and a drop of 1.2 per cent, respectively.

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Top US and European investors told Reuters this month that they are flagging their concerns about high prices to consumer goods companies, with Janus Henderson going so far as to cut some stakes it holds, and shorting food makers it believes are at risk of losing customers.

The consumer goods industry has struggled with soaring costs for about two years, as everything from sunflower oil and shipping to packaging and grain has become more expensive.

The higher costs began during the pandemic and took a turn for the worse after Russia invaded Ukraine, sending energy costs to record highs last year.

Rivals P&G and Nestle are set to report earnings results this week. REUTERS