UL - Unilever looks to source more ingredients from Africa

2023-05-31 07:23:11 ET

Unilever PLC ( NYSE: UL ) is pivoting to buying more of its key ingredients from local suppliers for its African operations in a bid to lower its foreign exchange exposure.

The consumer products giant saw net material inflation last year of €4B and it expects prices for some commodities to surge even further the first half of this year. As part of its sourcing pivot, Unilever ( UL ) is ramping up sourcing of sorbitol and spices from suppliers such as South Africa and Nigeria.

"Over 95% of the brands we sell to our (African) consumers are made in African factories...But, until quite recently, we could only source under a third of the inputs we need from within Africa," noted Unilever exec Reginaldo Ecclissato to Reuters.

Shares of Unilever ( UL ) gained 0.62% in premarket trading to $49.97 vs. the 52-week trading range of $42.44 to $55.99. The forward dividend yield on the stock is 3.66%.

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