Unilever raises its prices and profits

Shares in Unilever, the company behind brands such as Marmite, Magnum ice cream, Lux soap and Persil, have risen sharply following the release of better-than-expected results.

Net profit rose to 2.41bn euros ($3.43bn; £2.09bn) for the first half of 2011, up 9% on last year.

Prices rose 3.5% in the first six months of the year while underlying sales grew 5.7%.

Unilever shares closed 2.7% higher having been up more than 6%.

However, Unilever said profit margins were hit by the time-lag between costs rising and price increases coming into effect.

"In a tough and volatile environment we have again delivered strong growth," said Unilever chief executive Paul Polman.

"Volumes were robust and in line with the market, despite having taken price increases."