(Reuters] – Unilever (NYSE 🙂 beats third-quarter forecasts for sales growth on Thursday. The company also kept its full year profit margin guidance, as it increased prices to meet rising costs.

Knorr soup and Dove soap maker said that underlying sales increased 2.5% during the third quarter ended September 30, exceeding the 2.2% predicted by industry analysts.

Good demand from the United States of America, India, China, and Turkey aided growth. A 4.1% price increase more than compensated for a 1.5% volume decline.

As economies recover from the pandemic, consumers will see a rise in raw material prices, such as oil, food, and packaging. They also face higher transportation costs.

KitKat’s full-year target for Nestle Nescafe manufacturer Nestle was increased on Wednesday by the company, which also raised prices to cover these extra costs.

Analysts warn that Unilever will have a more difficult task because it accounts for about 60% of the turnover in emerging market, which is where inflationary pressures tend to be most intense. The group cut its full year operating margin forecast from slightly up to “about flat” in July.

According to the company, cost inflation is still at an extremely high level. However, they are sticking to their latest forecast. Analysts were worried about a price cut.

Unilever shares fell by 13% last year.