Consumer goods group Unilever reported stronger than expected quarterly underlying sales growth, helped by higher prices and volume, and strength in emerging markets.
The maker of Dove soap and Ben & Jerry’s ice cream also on Thursday stood by its outlook for the full year, which calls for underlying sales growth in the lower half of a 3 to 5 per cent range.
Rival Nestle also reported better-than-expected first-quarter sales on Thursday.
Following its first quarter under new chief executive Alan Jope, Anglo-Dutch Unilever also stood by its 2020 target for an underlying operating margin of 20 per cent, set by Jope’s predecessor Paul Polman in the wake of 2017’s rebuffed 143 billion dollars takeover offer by Kraft Heinz.
Unilever’s underlying operating margin was 18.4 per cent in 2018.
READ ALSO: Nollywood producers, distributors advised to shun films that debase societal values
In the first quarter, Unilever’s underlying sales, stripping out acquisitions, disposals and currency moves, rose 3.1 per cent.
Analysts on average were expecting a 2.8 per cent rise, according to a company-supplied consensus forecast.
Growth was balanced, with a 1.9 per cent contribution from pricing, which is less than analysts expected, and 1.2 per cent from volume gains, which is more than expected.
Chief Financial Officer Graeme Pitkethly told Reuters that many of the price increases were taken in emerging markets, where it is often easier to hold onto sales volume despite price increases.
Turnover fell 1.6 per cent to 12.4 billion euros, due to the disposal of the spreads business. (NAN)
