Unilever PLC (LSE:ULVR) has raised its full-year sales forecast after it achieved “strong” growth in a challenging economic climate in the third quarter, driven by increased pricing.
Underlying sales growth was 10.6% in the quarter, with turnover rising by 17.8% year-on-year to €15.8bn, the consumer goods giant revealed in a trading update.
A 12.5% hike in its prices had only a limited impact on sales volume, which fell by 1.6% in the three-month period, the company said, adding that it now expects underlying sales growth for 2022 to be above 8%.
In the first nine months of the year, underlying sales rose by 8.9% and turnover climbed by 16.1% to €45.6bn.
Chief executive officer Alan Jope said each of Unilever’s five business groups – Beauty & Wellbeing, Personal Care, Home Care, Nutrition and Ice Cream – delivered growth in the quarter, led by 14% growth in its billion-plus Euro brands.
“Strong pricing allows us to continue to drive increased investment behind our brands,” he said in the statement.
Looking ahead, Jope noted: “The global macroeconomic outlook remains mixed, and we expect the challenges of high inflation to persist in 2023. The delivery of consistent growth remains our first priority."
The company maintained its quarterly interim dividend for the third quarter at €0.4268.