# Unilever downbeat on Europe, China consumer sentiment Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-27 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Unilever Raises Sales Forecast Amid Consumer Sentiment Woes Meta Description: Find out how Unilever is navigating challenges and boosting sales in the face of economic headwinds in Europe and China. Make informed decisions with Reuters. URL: https://financedigest.com/unilever-downbeat-on-europe-china-consumer-sentimenthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-27t072418z3lynxmpei9q061rtroptp4unilever-results-1736814959602-compressed.jpg) By Richa Naidu LONDON (Reuters) -Unilever Plc on Thursday gave a dire assessment of consumer sentiment in Europe and China, two of its key markets, but raised its full year sales forecast as it lifted prices to counter soaring costs. Like the rest of the consumer goods industry, Unilever’s margins have been squeezed since the start of the war in Ukraine that has pushed up costs of energy and key ingredients. As a result, the company has [raised prices](https://www.financedigest.com/analysis-to-raise-prices-or-not-consumer-goods-makers-weigh-bets-on-buyer-strength.html "Analysis-To raise prices or not? Consumer goods makers weigh bets on buyer strength") sharply. Consumer sentiment in [Europe is at an all time low,” Chief Financial Officer Graeme Pitkethly told reporters, warning of fears of a “confluence of events” in Europe with energy prices](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel") and inflation rising and consumers’ savings waning. Shoppers around the world paid 12.5% more for Unilever [products in the quarter – a record price hike for the company – with sales volumes declining](https://www.financedigest.com/roche-flags-2023-earnings-decline-on-slump-in-covid-products.html "Roche flags 2023 earnings decline on slump in COVID products") 1.6%. The company [reported a better-than-expected increase in third-quarter sales](https://www.financedigest.com/ikea-reports-record-sales-as-price-hikes-offset-weakening-consumer-confidence.html "IKEA reports record sales as price hikes offset weakening consumer confidence"). [Shares were flat in morning trade](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"). Both the premium segments of the market and the value segments of the market are actually [growing quite quickly](https://www.financedigest.com/4-strategies-for-quickly-growing-your-startup.html "4 Strategies for Quickly Growing Your Startup"), at an equivalent rate,” Pitkethly told journalists. But inflation and the promise of austerity in some countries has prompted a [cost-of-living crisis](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas") that is pushing some people towards cheaper alternative products, such as private label goods made by retailers. The basic needs of our European consumers are occupying a [higher share](https://www.financedigest.com/asia-shares-creep-higher-wary-on-fed-and-boj-outlooks.html "Asia shares creep higher, wary on Fed and BOJ outlooks") of wallets – things like utilities, transportation and food – and there tends to be cut back on discretionary non-food items. Unilever makes more than 400 [brands ranging from Persil detergent to Ben & Jerry’s ice cream](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition "). In China, Unilever’s third biggest [market that has been doubling](https://www.financedigest.com/the-double-coated-foam-tape-market-to-override-the-shackles-of-monotony.html "The Double Coated Foam Tape Market To Override The Shackles Of Monotony") down on Covid-19 lockdowns, sales grew by 1%. The China number, 1%, was in fact a competitive performance in a Chinese market that is still quite subdued by continued lockdowns in China,” Pitkethly said, adding that confidence in China is lower relative to historical norms and that Unilever was not as able to [increase prices](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") in the country. Unilever said it now expects underlying [sales growth for the full year](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year") 2022 to be above 8%. In July, the company said it [expected to beat](https://www.financedigest.com/commerzbank-keeps-outlook-as-lower-q3-profit-still-beats-expectations.html "Commerzbank keeps outlook as lower Q3 profit still beats expectations") its previous forecast of 4.5% to 6.5%. Jack Martin, a [fund manager at Unilever shareholder](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") Oberon Investments, said the results were “very solid, pleasing to see among quite a turbulent earnings season generally. Volumes are slightly off but given how much they moved up [pricing and the economic](https://www.financedigest.com/sony-hikes-ps5-price-on-economic-pressures-rising-rates.html "Sony hikes PS5 price on economic pressures, rising rates") environment this speaks to the strength of the portfolio,” he said. [“Shares are flat in morning trading](https://www.financedigest.com/how-to-use-algorithms-to-save-time-and-make-money-when-trading-currency-crypto-shares-etc.html "How to use algorithms to save time and make money when trading (currency, crypto, shares etc)") which suggests that is how the market is also taking it. (Reporting by Richa Naidu; Editing by Jan Harvey and Matt Scuffham) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---