10th Feb 2022 09:18
(Alliance News) - Unilever PLC on Thursday posted profit growth for 2021 as the under-fire firm launched another large share buyback programme and promised to make no major acquisition in the "foreseeable future" after its failed tilt at the GSK Consumer Healthcare business.
The FTSE 100-listed consumer goods firm reported a pretax profit of GBP8.56 billion for 2021, up 7% from GBP8.00 billion the year before.
Underlying operating profit was EUR9.64 billion, up from EUR9.37 billion in 2020.
The company's revenue amounted to EUR52.44 billion, up 3.4% from EUR50.72 billion the year prior. The figure was higher than the company-compiled consensus forecast of EUR52.11 billion.
Underlying sales growth was 4.5% in 2021, beating the consensus estimate of 4.3%. Unilever put this down to a net positive impact of 1.3% from acquisitions and disposals, while there was a negative impact of 2.4% from currency-related items.
The firm declared a fourth-quarter dividend of EUR0.4268 per share and altogether delivered dividend growth of 3% for 2021.
The company also said it will conduct a share buyback programme of up to EUR3 billion over the next two years, which it expects to commence in the first quarter. This matches the amount of share buybacks the company completed in 2021.
Looking ahead, it expects underlying sales growth in 2022 in the range of 4.5% to 6.5%. It also expects high input cost inflation in the first half of over EUR2 billion. This may moderate in the second half to around EUR1.5 billion, it noted.
Unilever is facing pressure from activist investors, after a failed attempt to buy the consumer healthcare arm of drugmaker GlaxoSmithKline PLC for GBP50 billion.
"We have engaged extensively with our shareholders in recent weeks and received a strong message that the evolution of our portfolio needs to be measured," said Chief Executive Officer Alan Jope.
"We, therefore, do not intend to pursue major acquisitions in the foreseeable future and will conduct a share buyback programme of up to EUR3 billion over the next two years."
Shares were down 2.2% at 3,743.99 pence each on Thursday morning in London.
By Abby Amoakuh; [email protected]
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