London, Jan 13, 2026, 08:20 GMT — Regular session
- Unilever slipped 0.22% in early trading Tuesday in London
- Reuters Breakingviews highlights the squeeze on pricing power in India amid rising competition
- Investors are eyeing Unilever’s Feb. 12 earnings report for clues on growth and margin trends
Unilever’s shares slipped 0.22% to 4,760 pence by 08:07 GMT Tuesday, following a close of 4,770.5 pence on Monday. The stock has dropped nearly 2% over the last year and offers a trailing dividend yield of around 3.7%, LSEG data shows.
European shares hit a record high, amid caution ahead of U.S. inflation figures due later that day. Investors eyed the data closely, knowing it could shift rate expectations and sway “everyday goods” stocks alongside broader market trends. Reuters
A Reuters Breakingviews column late Monday highlighted that Unilever and Nestlé are losing pricing power in India. The rise of fast-delivery apps and emerging local brands is eroding their traditional distribution advantage. According to the piece, Hindustan Unilever’s sales rose just 2% in the year ending March 2025. EBITDA margins — which roughly track operating profit before interest, tax, and some non-cash costs — are projected by Visible Alpha to remain below pandemic highs through at least 2027. The article notes India makes up around 11% of Unilever’s sales.
That strikes a chord since India has often buffered weaker demand from Europe and the US. If that buffer shrinks, investors will dig deeper, questioning how much of the growth is genuine and how much just reflects pricing.
The squeeze comes as consumer groups aim to appear leaner and more focused, shedding what they call dead weight in their portfolios. At least, that’s the sales pitch.
Unilever wrapped up the demerger of its ice cream division in early December, spinning off the new entity as The Magnum Ice Cream Company. This shift changes the company’s structure and sets fresh expectations for investors.
Traders are focused on one key question: can Unilever continue raising prices without losing market share, particularly in emerging markets where consumers are more cautious and alternatives are just a click away.
The downside isn’t straightforward. If inflation eases and promotional wars die down, worries over margins could vanish fast — and those same brands that seem worn out during a slump often bounce back once spending revives.
Peers are caught in a similar push and pull. Nestlé stands out for its India exposure, while Reckitt and Procter & Gamble attract attention from investors eyeing the staples sector as a whole rather than individual names.
Unilever’s Q4 and full-year 2025 results drop on Feb. 12, with the company set to speak at the CAGNY Conference five days later on Feb. 17. These events promise updated data and insight into management’s outlook on India, pricing strategies, and spending plans for 2026.
