10 Questions for Management: Unilever PLC | Europe

Research evidence excerpt

10 Questions for Management: Unilever PLC | Europe

IdeaM7. Commodities: you have provided an estimate for commodity cost inflation of c

€750 million–€900m in 2026, around €350 million–€500 million more than

assumed at the start of the year. What might it be on an annualised basis for 2027?

How much of the price rise required to offset these costs have you taken so far, and

what kind of volume response have you seen? You've benefited from a stronger

supply chain than your local competitors in the Homecare category; how long would

you expect this advantage to persist?

8. Brazil tax changes: we understand that the changes could result in lower

inventory levels being carried by distributors/retailers into 2027; how should

investors frame the scale of the adjustment? What is the average level of inventory

days held by customers in Brazil, and how much do you think this could reduce

heading into FY27? Should we assume that this will unwind (providing a USG boost)

during Q1 2027? Can you provide a brief overview of how you see the margin

developing on this business, given the reallocation of tax revenues/costs within the

P&L, and will this be big enough to impact the group margin development?

9. India: how much price have you taken thus far, and how have volume elasticities

been, compared to your expectations. What do you think the company will need to

do in terms of pricing in H2? How has this varied by category? What has been the

competitive response? Do you think there is a tailwind from GST, or is this being

absorbed by higher fuel prices?

10. Latin America: last year, there were issues with both Brazil laundry and deos,

and it seems the actions taken to address this have been bearing fruit. On a scale of