UL - Unilever Stock: What Comes After the Price Hikes?
2023-08-11 05:48:00 ET
Unilever (NYSE: UL) is one of the largest consumer staples companies on Earth, with an incredibly diverse portfolio. As with all its peers, inflation has been a major headwind for Unilever in the last couple of years, putting material pressure on margins. It did what needed to be done, increasing prices, and now it has to wait to see if things play out like they normally do. Here's what investors should be watching for.
When you walk into a grocery store and buy a bottle of Unilever's Hellmann's mayonnaise, you are participating in the very end of the chain for that product. The beginning of that chain starts when Unilever buys ingredients and packaging. The middle of the chain is the selling and shipping of inventory to grocery stores. Consumer staples companies face a lot of costs in that mix.
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Unilever Stock: What Comes After the Price Hikes?