Unilever Battles Rising Costs with Strategic Price Increases

Unilever plans strategic price hikes amid rising costs influenced by the Iran war. Despite cost pressures, the company reports stronger-than-expected first-quarter sales growth, driven by solid volumes in beauty and home sectors. It aims to navigate economic challenges without altering its sales and profit forecasts for 2026.

Amid rising costs due to the Iran war, Unilever announced plans for strategic price hikes to mitigate financial pressures. The maker of brands like Dove and Axe revealed first-quarter sales growth exceeded forecasts, attributing this to notable volumes in the beauty and home sectors.

Unilever's finance chief, Srinivas Phatak, stated cost inflation for the year might reach up to 900 million euros, significantly higher than initial expectations. To manage this, the company will implement frequent but small price increments in select markets, concentrating on the latter half of the year.

The company’s sales were propelled by its beauty and home brands, as it focuses on personal care following a recent corporate restructuring. CEO Fernando Fernandez emphasized Unilever's commitment to volume-led growth, keeping its 2026 financial targets intact despite challenging market dynamics.