LONDON (Reuters) -Unilever Plc on Thursday reported quarterly underlying gross sales progress above expectations, helped by greater costs for its detergents, soaps and packaged meals.

The London-based firm stated it expects price inflaion to proceed in 2023, forecasting internet materials inflation within the first half of round 1.5 billion euros ($1.6 billion).

The packaged items business has raised costs sharply over the previous 12 months to deal with surging prices of all the things from cocoa and sunflower oil to wheat. The business had already been battling excessive COVID-era provide chain and uncooked materials bills when Russia invaded Ukraine, driving up the costs of power and a number of other different commodities.

“Within the first half, underlying value progress will stay excessive, and quantity progress can be unfavourable,” Unilever (NYSE:) stated in an announcement. “Quantity will enhance as value progress softens, however it’s too early to say whether or not quantity will flip optimistic within the second half.”

Some firms in Europe have stated they could unwind value hikes launched lately as hovering prices of power and different uncooked supplies have eased, doubtlessly offering some reduction to shoppers.

Unilever has had a dramatic previous 12 months, that includes three rejected bids to purchase GSK’s shopper well being enterprise, activist Nelson Peltz becoming a member of its board and Chief Govt Alan Jope asserting his departure. On the finish of final month, it named dairy govt Hein Schumacher as its incoming CEO.

Schumacher faces a battle to revive Unilever’s underperforming meals enterprise, whereas additionally managing tough value negotiations with retailers feeling the squeeze from inflationary pressures and a price of dwelling disaster.

Underlying gross sales at Unilever rose 9.2% within the fourth quarter, beating company-provided analyst estimate of a 8.2% improve.

($1 = 0.9316 euros)