Anglo-Dutch consumer goods giant Unilever said it is confident of meeting its full year sales and margins targets today (3 May), posting an expectation-beating 5.7% increase in first quarter sales.
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The maker of Knorr soups and Hellmann’s mayonnaise said that net income for the quarter rose 2.3% to EUR1.01bn (US$1.37bn), up from EUR990m a year earlier.
“We have had a good start to 2007, with broad-based sales growth across regions and categories and improved margin development driven by home and personal care,” said chief executive Patrick Cescau.
However, Cescau did warn of an anticipated rise in commodity costs which may be passed along to consumers, prompting price increases.
“I am confident, however, that the combined benefits of organic growth in our 3-5% guidance range and improved efficiency leaves us well placed to achieve our margin objectives for 2007,” he said.
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By GlobalDataUnilever is eyeing margins above fiscal 2006’s 13.6%. First quarter operating margins rose 0.4% to 13.7%, the group revealed.
Since its shock profits warning in September 2004, Unilever has been on a steady road to recovery, increasing its spending on top brands and cutting costs.
Shares in Unilever, the world’s third largest food group, were up 4.63% at 11.20am (GMT), rising to 1,628 pence.
