Unilever has nearly completed the spinoff of its tea business division. Unilever has stated that it plans to privatize the tea division and anticipates this to be completed in October. This will be followed by a sale, partnership or IPO. The company will report this on Thursday, along with its quarterly figures.
Last year, the division spun off made 2 billion euros in revenue. Unilever will continue to produce iced tea and hot tea in India and Indonesia.
Unilever’s total revenue for the first half of the year was 25.8 Billion Euros, which was 0.3% more than in the same period last years. The relaxation in the catering sector has led to increased sales of ice creams. However, European icecream sales to the catering sector are still lower than they were before the corona crises.
Unilever is experiencing higher raw material costs, which are putting pressure upon its profit margin. This includes the cost of soybeans and palm oils, as well as packaging costs. According to the company, its operating profit margin will be similar to 2020’s in 2020, as opposed to the slight increase previously anticipated.
Graeme Pitkethly, the financial director, spoke out to explain that the company had a strong first half. Due to new corona epidemics, however, the corona crise continues to present challenges.
Earlier this week, it was announced by Unilever that Ben & Jerry’s will cease selling its ice cream to Palestinians. The company says it is not in line with the company’s values to sell its wares there.
Naftali Bennet, Israeli Prime Minister, warned Alan Jope, CEO of Unilever, by phone about “serious consequences”. It is not known what Israel will do about the ice-cream boycott.