24th Oct 2024 09:49
(Alliance News) - Unilever PLC on Thursday lifted its third quarter dividend after delivering another successive quarter of good volume growth as the company implements its transformation plan.
The London-based consumer goods company said turnover was flat on-year at EUR15.2 billion in the third quarter ended September 30. Underlying sales growth stood at 4.5% with underlying volume growth at 3.6%.
Ice Cream turnover rose 8.1% to EUR2.4 billion and Beauty & Wellbeing turnover rose 5.5% to EUR3.2 billion.
Personal Care turnover fell 5.7% to EUR3.4 billion, Home Care fell 2.9% to EUR3.0 billion, and Nutrition was down 1.5% at EUR3.2 billion.
Unilever will pay a quarterly dividend of EUR0.4396 per share, matching the previous quarter and 3.0% ahead of the EUR0.4268 per share dividend paid a year ago.
At 7.7% Europe led the way in regard to underlying volume growth during the quarter. The Americas and Asia Pacific Africa followed with 4.6% and 1.0% growth.
Chief Executive Officer Hein Schumacher said: "We have delivered a fourth consecutive quarter of positive, improved volume growth, with each of our Business Groups driving higher volumes year-on-year...We are still in the early stages of transforming our performance as we execute the Growth Action Plan at pace - focused on doing fewer things, better and with greater impact.
"We are starting to see the positive impact from scaling fewer, bigger innovations across our markets supported by increased brand investment. We are taking decisive actions, where we see operational or market challenges to ensure we are well positioned for consistent and improved performance."
As part of Unilever's transformation the company announced in March that it would separate its Ice Cream business and launch a major productivity programme to substantially improve efficiency and effectiveness.
"Separation activity is on track to complete by the end of 2025. We are progressing with the legal entity set up, the standalone operating model and the carve-out financials," Unilever commented.
Looking ahead, guidance for full-year 2024 remains unchanged with Unilever expecting USG of 5-6% with an underlying operating margin of at least 18%. In 2023, Unilever reported USG and UOM of 7.0% and 16.7% respectively.
The second and final tranche of the company's EUR1.5 billion share buyback programme is underway with Unilever due to return EUR800 million to investors from September through to December.
Unilever shares were up 4.0% at 4,839.00 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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