Unilever Q1 Turnover Rises, Maintains Dividend; Sees FY22 Margin At Low End Of Range

(RTTNews) - Consumer goods giant Unilever PLC (UN, ULVR.L, UL) reported Thursday that its first-quarter turnover increased 11.8 percent from last year to 13.8 billion euros, including a currency impact of 3.5 percent.

Underlying sales growth was 7.3 percent, with 8.3 percent increase in price, despite a 1 percent drop in volume. All divisions recorded higher turnover.

Emerging markets grew 9.5 percent with a 10.1 percent contribution from price, with volumes slightly negative. Developed markets increased 4.1 percent, with 5.7 percent from price. North America grew 8.5 percent, and sales edged up 0.7 percent in Europe as price growth was accompanied by a decline in volumes.

eCommerce sales now represent 14 percent of turnover following another quarter of strong double-digit growth.

The increased results were delivered amid significant rises in input costs and the war in Ukraine.

Further, the company maintained quarterly dividend at 0.4268 euro per share, payable in June 2022.

The company said it remains on track to deliver the previously announced, simpler, more category-focused organisation structure on 1 July 2022.

Looking ahead for the first half, underlying operating margin is expected to be within the guided 2022 range of 16 percent - 17 percent.

For fiscal 2022, the company currently expects underlying operating margin to be at the bottom end of that range as a result of the forecast increase in costs in the second half.

Underlying sales growth in 2022 is expected to be towards the top end of the previously guided range of 4.5 percent to 6.5 percent.

The company expects to restore margin through pricing, mix and savings delivery during 2023 and 2024, as market conditions normalise.

The announced sale of global tea business would be completed in the second half of 2022.