Shares of Unilever Plc were gaining around 3 percent in the Amsterdam trading as well as on the NYSE on Thursday after the consumer goods major reported higher underlying sales growth in its third quarter, and maintained its fiscal 2024 growth forecast. The third-quarter sales, on a reported basis, remained flat.
CEO 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 on track to deliver our 2024 outlook and are confident that the steps we are taking will help to transform Unilever over time into a consistently higher performing business.
Regarding the progress on the planned Ice Cream separation and productivity programme, the company said the separation activity is on track to complete by the end of 2025.
For the full year, the company continues to expect underlying sales growth to be within its multi-year range of 3 percent to 5 percent, with the majority of the growth being driven by volume.
Underlying operating margin for the full year is expected to be at least 18 percent. The year-on-year margin progression in the second half would be smaller than in the first half.
In its third-quarter trading statement, Unilever said its turnover of 15.2 billion euros was in line with the prior year, amid a negative currency impact of 2.8 percent and 1.5 percent from disposals net of acquisitions.
Underlying sales growth was 4.5 percent against slower market growth, led by its Power Brands, with particularly strong performances from Dove, Liquid I.V., Comfort and Magnum. Price growth continued to moderate in line with expectations.
Underlying volume increased to 3.6 percent as all business groups achieved positive volume growth. As expected, underlying price growth continued to moderate to 0.9 percent.
In the quarter, the Power Brands recorded 5.4 percent underlying sales growth, driven by volume growth of 4.3 percent. Other brands also delivered volume growth of 1.3 percent.
Beauty & Wellbeing sales increased 5.5 percent to 3.2 billion euros on a reported basis, and the growth was 6.7 percent on an underlying basis, with volume growth of 5.7 percent.
Personal Care sales, meanwhile, dropped 5.7 percent to 3.4 billion euros, while underlying sales increased 4.4 percent with 3.1 percent from volume, driven by a strong Dove performance.
Home Care sales also declined 2.9 percent to 3 billion euros, but underlying sales increased 1.9 percent, with 3.3 percent volume growth.
Nutrition sales fell 1.5 percent to 3.2 billion euros, but underlying sales grew 1.5 percent.
Sales of Ice Cream unit, which is being separated, were 2.4 billion euros, up 8.1 percent on a reported basis and up 9.8 percent on an underlying basis, with 6.7 percent growth from volume and 2.9 percent from price.
In the quarter, underlying sales from developed markets increased 6.9 percent with 6.8 percent from volume and 0.1 percent from price. Emerging markets sales also went up 2.9 percent, with 1.4 percent from volume and 1.5 percent from price.
Meanwhile, sales in China declined low-single digit with market weakness across categories. South East Asia declined mid-single digit, driven by an 18 percent decline in Indonesia.
In Amsterdam, Unilever shares were trading at 57.68 euros, up 3.33 percent.
On the NYSE, the shares are at $62.26, up 2.67 percent.