Increase Prices: Commodity Costs and Paul Polman

increase prices: The chief executive, Paul Polman, said a plan to increase prices in a bid to offset rising commodity costs had not affected sales, putting the company on track to reach targets it has set for 2020, according to The Guardian. However, despite his optimism, investors were unimpressed and shares in the FTSE 100 company fell 1.5%. The shares have been under pressure since the end of August, amid anger among City shareholders at a proposal, pioneered by Polman, to simplify its Anglo-Dutch structure by having a sole headquarters in Rotterdam. The firm behind brands such as Hellmann's mayonnaise and Dove soap reported a 3.8% rise in underlying sales to 12.5bn 11bn during the three months to the end of September. Unilever would have exited the FTSE 100, forcing many London-based institutions to remove it from their portfolios. Unilever made no mention of the U-turn in its third quarter statement on Thursday but the chief financial officer, Graeme Pitkethly, said the board would take time to consider all the feedback it received from shareholders on the issue before making any further moves. Opposition from investors eventually forced Polman to scrap the plan earlier this month before it was put to a vote. (news.financializer.com). As reported in the news.

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