Unilever: posts flat quarterly sales, citing Covid impact

(CercleFinance.com) - Consumer goods group Unilever posted flat first-quarter sales on Thursday, citing the "unprecedented impact" of Covid-19 on the economy.


The maker of Knorr soup and Lipton tea, amongst many other brands, said its underlying sales growth was flat in the first three months of the year, as growth of 0.2% in volume was offset by a 0.2% fall in prices.

Developed markets posted 2.8% growth, Unilever said, whilst emerging markets declined 1.8%, with business in China logically declining as a result of the lockdown.

Growth in India was impacted by the slowing market and the stay-at-home measures implemented at the end of March, the Anglo-Dutch giant said.

In contrast, North America and Europe benefitted from household stocking in the wake of the pandemic, the group said.

Unilever is maintaining its plan to pay a dividend of 0.4104 euro per share, the company said, but it is withdrawing its previous growth and margin outlook for 2020, in particular its key 20% EBIT margin target.

The Amsterdam-listed shares took a bruising after this publication, down 4.7% in early morning trade.

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