25th Apr 2024 09:28
(Alliance News) - Unilever PLC on Thursday said it had "increasing confidence" in its restructuring plans after delivering a modest improvement in first quarter sales.
Shares in Unilever rose 5.0% to 4,056.22 pence each in London on Thursday.
The owner of Marmite, Dove soaps and Domestos said sales in the first three months of 2024 rose 1.4% to EUR14.96 billion from EUR14.75 billion a year prior.
Underlying sales grew by 4.4% including volume growth of 2.2%. Prices rises accounted for a further 2.2% of the increase.
Unilever said its 'Power Brands' which account for 75% of turnover delivered 6.1% underlying sales growth, driven by a 3.8% increase in volume.
Chief Executive Hein Schumacher highlighted "strong performances from Dove, Knorr, Rexona and Sunsilk."
"We are implementing the growth action plan at speed, focused on three clear priorities: delivering higher-quality growth, creating a simpler and more productive business, and embedding a strong performance focus. This is underpinned by our commitment to do fewer things, better and with greater impact."
He said the transformation is at an "early stage, but we have increasing confidence in our ability to deliver sustained volume growth and positive mix as we accelerate gross margin expansion."
The firm left its 2024 outlook unchanged predicting underlying sales growth of 3% to 5% and a modest improvement in underlying operating margin.
Analysts at Barclays were impressed.
"Unilever is making decisive steps to become a higher growth higher margin company and whilst early stages, our conviction continues to increase that this is the most compelling turnaround story in European Consumer Staples," the broker commented.
Beauty & Wellbeing saw sales rise 3.1% to EUR3.19 billion from EUR3.09 billion. Underlying sales here increased 7.4%.
Personal Care sales edged up by 0.4% to EUR3.41 billion from EUR3.40 billion and Home Care by 0.6% to EUR3.19 billion from EUR3.17 billion.
Nutrition sales climbed 1.1% to EUR3.39 billion from EUR3.35 billion and Ice Cream by 2.7% to EUR1.79 billion from EUR1.74 billion.
By Jeremy Cutler, Alliance News reporter
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