Unilever (NYSE: UL) shares were climbing $1.68, or 5.17% to $34.15 in early trading this morning. This is after, according to Bloomberg, "the world's second-largest maker of food and detergent, said revenue will beat its forecast for the first time in six years."
Naturally, with rising commodity prices, I expected the company to feel at least a margin squeeze, but Unilever has been proactive and has raised prices 4.8% in the quarter to offset its rising costs. The company increased not only prices but also managed to grow sales of Dove soap, Hellmann's mayonnaise and Lipton tea to post a first-quarter net income climb of 33% and exceed analysts' estimates.
Apparently, the company's Boursin cheese unit, which took the brunt of the price increase, also helped boost gains as revenue grew 7.2% and sales rose 14% in the Asia Africa region and 9.6% in Latin America, making up for disappointing growth in Europe.
Naturally, with rising commodity prices, I expected the company to feel at least a margin squeeze, but Unilever has been proactive and has raised prices 4.8% in the quarter to offset its rising costs. The company increased not only prices but also managed to grow sales of Dove soap, Hellmann's mayonnaise and Lipton tea to post a first-quarter net income climb of 33% and exceed analysts' estimates.
Apparently, the company's Boursin cheese unit, which took the brunt of the price increase, also helped boost gains as revenue grew 7.2% and sales rose 14% in the Asia Africa region and 9.6% in Latin America, making up for disappointing growth in Europe.
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