Marmite & Magnum's turnover falls, but Unilever's profits grow to almost £9 billion
SINGER Miley Cyrus seems to be enjoying the cream of the crop.
Consumer goods giant Unilever, which makes Magnum ice creams, saw profits rise last year by selling slightly more products, despite the introduction of higher prices.
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It increased prices across its range by an average of 6.8 percent.
The number of items sold increased by 0.2 percent, helping profits grow by 2.6 percent over the year to £8.45 billion.
However, food and ice cream brands such as Magnum (promoted by Miley), Carte D'Or, Knorr and Marmite, which saw the biggest price increases, suffered a decline in sales.
In 2023, it focused on its 30 most profitable brands, such as Ben & Jerry's, Hellmann's and Dove, which make up three-quarters of sales, to drive growth.
But it was hit as consumers switched to cheap alternatives.
Boss Hein Schumacher said: “Overall performance must improve.”
His comments helped shares rise 5 percent yesterday.
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Yodel's buying stalls
PACKAGE delivery company Yodel is “exploring options” after reports suggested it may want to call in administrators after failing to find a buyer.
It employs 10,000 people and supplies to high-profile chains such as John Lewis, Argos and AO World.
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Last year the company delivered 191 million packages.
Yodel said: “Discussions are ongoing, constructive and in their final stages.
“While ongoing, operations continue without any disruption.”
The courier company is part of the Logistics Group Holdings, owned by Barclay.
One of its biggest customers is online retailer the Very Group, which is also owned by Barclays.
The company said record service levels had been achieved over the Christmas period.
Friendliest cut
HAIR and beauty workers are pleading with the government to cut VAT to save their jobs.
The Salon Employers Association warned that 5,500 businesses could close unless immediate action is taken.
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It wants VAT on hair and beauty services to be reduced to ten percent.
The hospitality sector, which has benefited from a temporary five percent VAT rate during the pandemic, has also called for a similar cut.
Toby Dicker, from the Salon Employers Association, said: “The Government granted a discount to hospitality during Covid but ignored our calls for this.
“They simply cannot expect a sector so badly hit by labor costs, VAT and other taxes to continue absorbing costs.”
The sector has shrunk alarmingly.
While there were still 122,000 people working in the sector in 2018, this had fallen to 88,000 by 2022.
Mr Dicker, who runs salon group The Chapel in Kent, said: “The Government and HMRC are forcing honest businesses into bankruptcy.”
Research by the association among salon owners shows that more than half are considering closing their doors unless the government takes immediate action.
Mr Dicker added: “With rising costs, falling client spend and an ongoing recruitment crisis, many salons are struggling to survive.”
A spokesperson for HM Treasury said: “We have recently expanded measures to support hairdressers, including a 75 per cent cut on their business rates – worth £2.4 billion – and energy bill protection following Putin's invasion of Ukraine. ”
Sales of electric used cars are increasing
Sales of used battery electric cars nearly doubled last year, according to the Society of Motor Manufacturers and Traders.
A record 119,000 vehicles changed hands in Britain in 2023, a 91 percent increase on the previous 12 months.
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SMMT said it is showing “strong demand for zero-emissions driving”.
Ian Plummer of Auto Trader said: “With many second-hand models now priced the same as their fuel counterparts, the switch to electric has never been more attractive.”
The overall used car market grew by 5 percent in 2023 with 7.2 million transactions, up from 6.9 million in 2022.
The market share for the sale of used electric cars was 1.6 percent, compared to 0.9 percent in 2022.
The Ford Fiesta was the most popular used car in 2023, with 308,000 sales.
SMMT's Mike Hawes said: “A healthy new car market is key to greater choice in the second-hand sector.”
Time for a change
Switzerland's WATCHES has blamed falling sales in Britain on a so-called tourist tax – referring to the government's abolition of VAT-free shopping for tourists in 2020.
Britain's biggest seller of Rolex and Omega watches said sales fell 7 percent in the past three months as revenue from tourists was minimal.
But the company said it was “encouraged” by news of a government review of the controversial measure.
Bat smoked out
CIGARETTE and vape group British American Tobacco posted an annual loss of £17.1 billion in 2023 after its US brands took a £27.3 billion write-down.
The maker of Lucky Strike and Dunhill had made a profit of £9.3 billion in 2022.
Boss Tadeu Marroco said the upcoming ban on disposable vapes would not have a major impact on the group.
He said: “Because we have a modest share of disposable vapes, we would be in a stronger position because we are leaders in refillable vapes”
Mortgage chaos
THE number of people in mortgage arrears increased by 7 percent in the last three months of 2023.
UK Finance said 93,680 people were in arrears of 2.5 percent of their payment obligations
balance, an increase of 25 percent compared to 2022.
Drug windfall
PROFIT at drug giant Astrazeneca more than tripled last year thanks to strong sales of cancer treatments.
But less impressive fourth-quarter figures sent shares down seven percent yesterday.
Profit for the year was £5.5bn, up from £1.8bn in 2022, compared to just £710m in relative terms over the last three months.
Sales of its oncology drugs rose by a fifth and now account for two-fifths of global sales.
Boss Pascal Soriot added: “We expect another year of strong growth in 2024.”