UK: Food inflation rises to 18.2% as it hits highest rate in over 45 years

Re:UK: Food inflation rises to 18.2% as it hits highest rate... by bialpio on Friday March 24, 2023 @12:22PM (#35291363)

It's probably better to look at the margin, I could see how the profits increased in absolute numbers as people may have switched from eating out to home-cooked food.

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by yourusername on Friday March 24, 2023 @12:39PM (#35291673)

Profit margin increased by 230 base points that represents a 14% higher margin.

130 basepoints if you use GAAP measures so only ~7% higher margin then but clearly unilever doesn't just have higher costs but is also increasing their margin.

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by apetresc on Friday March 24, 2023 @12:31PM (#35291509)

Do restaurants get their groceries from completely different supply chains than the rest of us?

Sure, the distributors are different, but I'd assume it's all still Monsanto, Unilever, etc., at the end of the day anyway.

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by bialpio on Friday March 24, 2023 @02:46PM (#35293726)

I don't know, but I would not be too surprised if local / smaller producers are a bit better represented for restaurants. In any case, profit margin should not be sensitive to this.

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by bombcar on Friday March 24, 2023 @02:19PM (#35293373)

Margin will also help discount issues resulting from Covid; a company that lost money during Covid (think restaurant suppliers) would go to a profit when it was over, but are they making MORE margin (percentage) than they were before Covid?

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