Inflation worries overshadow Unilever's strong first half, hit shares

It maintained its 3-5% sales growth forecast for the year, but rising prices of everything from crude to palm and soybean oil made the company cut its operating margin outlook to "about flat" from "slightly up" earlier and flag greater uncertainty surrounding that forecast.

Unilever Plc warned on Thursday that surging commodity costs would squeeze its full-year operating margin, overshadowing strong second-quarter sales growth fuelled by the easing of pandemic-related curbs in many of its markets.

Underlying sales for the maker of Dove soap rose 5% in the three months ended June 30, above 4.8% forecast by analysts.