Household giant Unilever posts better-than-expected results

Susannah Streeter, chief investment strategist at Wealth Club, said: “For now household goods giant Unilever, the maker of Cif and Colgate, has been spared significant fallout from the war in Iran. It posted better-than-expected growth for the first quarter, with sales volumes up 2.9%. But these numbers only captured a month of disruption due to the war, and some of the most onerous effects and increased costs haven’t yet filtered through.

“The production of plastic is becoming more expensive, a material the company relies on for its cupboard of cleaning and beauty brands. Energy and freight costs are also on the rise. With household budgets under the cosh, shoppers will already be looking to cut corners and could trade down to cheaper brands. Shares were flat in early trade, reflecting a more cautious outlook underlying sales growth at the lower end of its 4% to 6% range.”