Consumer goods giants Unilever and AB InBev report mixed third-quarter results

Major consumer goods companies Unilever and AB InBev have reported third-quarter financial results that highlight a growing tension between revenue growth and rising operational costs.

Unilever reported a 6.7 percent increase in revenue to 13.3 billion euros, with organic sales growing 5.2 percent. While demand remained robust in emerging markets like India, the company noted that price increases accounted for 2.3 percent of this growth. To offset soaring commodity, energy, and transport costs linked to the conflict in Iran, Unilever warned that price hikes may accelerate in 2027. The company is also progressing with a plan to merge its food division, including brands like Knorr and Hellmann’s, with US-based McCormick.

AB InBev met profit forecasts with organic revenue growing 4.9 percent to 16.5 billion dollars. However, the brewer faced margin pressure, with its operating margin contracting to 36.1 percent due to higher costs for aluminum, diesel, and marketing. The company also reported a significant 16.8 percent drop in sales in China, which weighed on overall volume growth. Despite these challenges, AB InBev saw strength in its premium beer segment and a 35 percent increase in non-alcoholic beer revenue.