29th Apr 2021 08:37
(Alliance News) - Unilever PLC on Thursday posted underlying sales growth in its first quarter, though currency headwinds meant revenue was subdued.
The Ben & Jerry's and Domestos owner's shares were 3.4% higher at 4,215.00 pence each in London on Thursday morning, one of the best blue-chip performers, however, after also announcing plans for a EUR3 billion share buyback.
The consumer goods firm's revenue in the first three months of 2021 slipped 0.9% year-on-year to EUR12.33 billion from EUR12.44 billion a year earlier.
Currency-related items caused an 8.0% hit, more than offsetting its 5.7% underlying sales growth.
Revenue fell 5.0% in its Beauty & Personal Care unit, which includes the Dove and Rexona brands.
In Home Care, Unilever's revenue fell 4.2%, though in Foods & Refreshments, it surged 6.0%.
"Unilever has made a good start to the year. Our focus on operational excellence, innovation, and purposeful brands is continuing to strengthen competitiveness," Chief Executive Officer Alan Jope said.
"We are confident that we will deliver underlying sales growth in 2021 within our multi-year framework of 3-5%, with the first half around the top of this range. We expect to increase underlying operating margin slightly for the full year, though with a decline in the first half driven by Covid-19 impacts, higher cost inflation and increased marketing spend over the prior year."
Unilever declared a EUR0.4268 per share dividend, up 4.0% year-on-year from EUR0.4104.
In addition, the company said it will launch a EUR3 billion buyback programme in May.
CEO Jope added that the divestment of the company's tea business is "on track".
"We continue to evaluate the most value creating model, including an IPO, a demerger, a joint venture, or a disposal, and we have also appointed an external CEO to lead this business into its next phase. The business that will be separated generated revenues of around EUR2 billion in 2020," Unilever added.
Unilever also noted that it currently faces several ongoing probes from competition watchdogs, including in Italy, Greece, South Africa and Turkey.
"These proceedings and investigations are at various stages and concern a variety of product markets. Where appropriate, provisions are made and contingent liabilities disclosed in relation to such matters," the company added.
By Eric Cunha; [email protected]
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