Unilever (NYSE: UL) provided a third-quarter trading update on Thursday where the consumer goods giant increased its prices by 12.5% in Q3 even as volumes fell by 1.6%. Unilever’s sales were up 17.8% year-over-year to €15.8 billion. The company now expects sales growth to be above 8% in FY22.
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What’s more, the company’s billion Euro brands which make up more than half of Unilever’s group turnover were up 14% “led by strong performances from OMO, Hellmann’s, Rexona, Magnum and Lux.”
Alan Jope, Unilever’s CEO stated, “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.”
Unilever is also searching for a new CEO as Jope is likely to retire by the end of next year.
Is Unilever a Buy, Sell or Hold?
Only two analysts have covered the stock in the past three months and while one analyst has a Buy rating, the other has a Hold rating on the stock with a consensus Moderate Buy rating.
The average price target for UL stock is $42.75 implying a downside potential of 4.9% at current levels.
