Sumary of Unilever reveals profit margins hit by cost inflation as giant faces row over Ben & Jerry’s settlement boycott:
- Rising costs for everything from palm oil to crude have put pressure on profit margins at Unilever, the consumer goods giant announced on Thursday.
- The multinational, behind brands from Dove Soap to Hellmann’s, had a 2020 operating margin target of 20%.
- But despite recently stepping up price rises, the firm said its underlying operating margin for the six months to June was down 100 basis points on the same period in 2020, to 18.8%.
- The firm now expects 2021 full-year underlying operating margin to be “around flat”.
- He also put the margin hit down to marketing spend, and said the “ambition is still to deliver an improvement” to margins.
- READ MOREIt comes days after high-end mixer-maker Fever-Tree also warned challenges posed by rising global logistics costs have “progressively impacted” its margins.