Unilever: organic growth exceeds expectations

(CercleFinance.com) - Unilever said on Thursday that it had achieved stronger-than-expected organic growth in Q1, thanks to a combination of price increases and higher sales volumes.


The FMCG giant reported organic growth of 4.4% for Q1, compared with a 3% rise expected by a consensus provided by the company.

This figure includes volume growth of 2.2%, to which a favourable price effect - also 2.2% - was added.

This morning Deutsche Bank analysts said that while the impact of price increases is likely to diminish, we expect it to continue to make a positive contribution to earnings over the rest of the year.

The group points out that its performance was driven by demand for its power brands, such as Dove, Knorr, Rexona and Sunsilk, which achieved organic growth of 6.1% in the quarter.

Growth in its beauty products business - which accounts for more than 20% of sales - was particularly strong. - stood out in particular, with organic growth of 7.4% over the first three months of the year.

The Anglo-Dutch group confirmed that it expects organic sales growth of between 3% and 5% for the year as a whole, accompanied by a moderate increase in its current operating margin.

On the London Stock Exchange, Unilever shares were up over 4% early Thursday morning.


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