Unilever’s argument of higher costs is based on the weakening of sterling. On Thursday morning, the pound was down 0.28 percent against the dollar at 1.2181.
The currency has been depreciating, reaching 31-year-lows, due to the uncertainty involving the upcoming Brexit negotiations. It managed, however, to make some gains on Wednesday, going up as much as 1.6 percent, after Prime Minister Theresa May agreed to give British lawmakers a say in the upcoming talks.
Unilever said it would not comment on the issue.
However, according to Reuters, Unilever Chief Financial Officer Graeme Pitkethly said, following the company’s reported results, that discussions over price increases to offset increasing costs are a normal when doing business.
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