Unilever Shares Underperform, BMI Sees Firm As Less Well Positioned To Pass On Commodity Costs

Shares in global consumer group Unilever were hit on April 28 after the firm warned that higher input costs could hit margins during 2011. The firm reported a 7% jump in revenues for Q111, but saw any possible positive reaction to this growth wiped out by the admission that input costs were expected to increase by 5% during the year (up from 4% previously forecast). The firm suggested that this could hit margins in the first half of 2011, but said it was hopeful of seeing a recovery in the second half. This announcement is at odds with the results of other leading firms Nestlé and Danone, which so far have been much less impacted by rising costs, a contrast worthy of further examination.

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