Unilever and Nestlé, some of the largest consumer companies in the world, have witnessed a strong growth in sales in the first three months of 2025 despite the threat on the horizon of tariffs.
The growth of competitors came from the high demand for some distinct products and raising prices to compensate for the high prices of cocoa and coffee.
The basic unilever sales increased by 3 % during the first quarter, with a personal care category brought in most of the works. The so -called alleged energy costs in London, which contributed to 75 % of the group rotation, have witnessed 3 % sales.
In the middle of the pause, UNIEVER is taking over the stopping process that has witnessed major driving changes and a comprehensive reform in its business focuses on simplifying the market share and acquiring it from competitors. During the epidemic, Unilever began losing shoppers with price increase to cost compensation costs.
Earlier this month, the company toppled the CEO of Hein Schumacher, and developed the financial manager Fernando Fernandez.
Fernandez has had one loud message since it took over the higher position: to make major changes in the consumer brand behind the dove soap and Vaseline cream.
Fernandez said that the new trend of the company means “a ruthless obsession with the consumer” during a profit call on Thursday.
“We have a flexible wallet, a good momentum, and above all, a very clear feeling of what we have to do,” said the new CEO.
Nestle faced similar conflicts. “The Swiss company is behind Kitkat and Nespresso also with the increase in the costs of raw materials by raising the prices on its products, which its chair, Paul Bolkk, says,” Nestle, “said Nestle.”Get a little bit with“
However, since the demand for coffee and sweets, such as Smarties and Jundy Street, flourished in the first quarter, the company reported an increase in organic revenues by 2.8 %, overcoming the estimates of analysts by 2.6 %.
“We are trying to take as much price as possible to cover our costs while realizing the consumer response in a competitive environment,” said CEO Laurent Frexcis. Reuters mentioned. “Some political decisions have taken the economic decisions that have made somewhat the confidence of the consumer already.”
Nestle, too, is subject to a conversion to focus on “Billionaire brands“Or its strong suite performance of brands that can become growth engines. The VEVEY man -based company plans to reduce $ 2.8 billion of costs by 2027.
Consumer companies such as Unilever and Nestlé are constantly wandering due to pricing to provide strong numbers on higher lines without disturbing shoppers. Become the topic sensitive In the economic effects of the epidemic when consumers with financial distress, the major brands were traveled, amid high enlargement in favor of the best deals.
The talk of customs tariffs in the United States threatens to restore some of these pressures, such as Experts are worried About influencing the medium term of additional fees on the feeling of the wider consumer. This is set against the background of cocoa and coffee prices, and the main components in some of the best unilever and Nestlé products.
Given that its products are sold all over the world, Unilever and Nestlé have wide manufacturing factors across regions. Nestle, for example, makes About 90 % One of its American products inside the country, protects it from the worst impact of definitions.
However, companies also consider the United States the largest market in most product categories, making the country’s demand for decisive health.
How consumers deal with the global order will treat the demand for consumer goods manufactured by the two companies. Unilever referred to “the decline in consumer feelings”, while Nestlé said that political and economic decisions have led to “the really soft consumer confidence.”
On Wednesday, the British company Reckitt Benckiser, which makes Dettol and Strepsils Lozenges of consumer confidence. These challenges can determine the demand for the competitive market of consumer goods until 2025.
“While the full image of the definitions is still revealing, our analysis indicates that at this stage, the direct impact on our works will be limited,” said Fernandez.
Meanwhile, the financial manager of Mastlla Manz warned that the customs tariff may harm selected parts of its work, such as water capsules packed in bottles and capsules of Nespresso. The Swiss giant said that it would reduce prices by 1 % in the United States to maintain their attractiveness with American shoppers.
While the size of Nestlé and Unilever provides a large pillow, they will have to monitor special stickers that offer the same products at lower prices.
“The number of retailers who have developed the capabilities of consumer companies significantly increased,” Aftab Hussain, the manager and a senior partner in the consumer and retail team in BCG, Reuters said. “You see innovations come from retail traders on private brands that already eliminate brands (the largest).”
This story was originally shown on Fortune.com
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