Unilever, a renowned British consumer goods company, has cautioned customers about potential price hikes on several of its products in the coming days. The company’s failed attempt to acquire GlaxoSmithKline’s consumer division has resulted in substantial financial losses and discontent among investors, necessitating cost adjustments that may be reflected in product prices.
“We have paid close attention to our shareholders’ feedback. The appetite for a deal on the scale of GSK consumer health is lacking,” stated Unilever CEO Alan Jope in an interview with CNBC.
“We have no plans to pursue such transformative acquisitions in the foreseeable future. We have made it clear that we have closed the chapter on that deal, and it’s no longer on the table.”
Unilever owns the rights to various popular consumer products worldwide, including Dove soap, Ben & Jerry’s ice cream, Marmite spread, and more. However, the expenses associated with manufacturing and distributing these items globally are considerable, and with ongoing supply chain and labor market challenges, inflation seems inevitable.
“The predominant feature of this year will likely be the inflation of commodity and input costs,” mentioned Jope.
Unilever, owner of Ben & Jerry’s and Dove soap, sees ‘substantial’ price hikes https://t.co/X26dQuM8fF pic.twitter.com/AfJDmxo3j9
— New York Post (@nypost) February 10, 2022
Jope remains optimistic that Unilever can achieve growth in 2022 to satisfy shareholders, yet price increases are inevitable until operational expenditures decrease.
“Raising prices is a last resort. Nevertheless, in these circumstances, we are and will be implementing significant price hikes,” Jope stated.
“This essentially reflects a decrease in our profit margins as we are committed to maintaining investments in the business during a period marked by high commodity inflation,” he added.
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