Anglo-Dutch consumer goods giant Unilever saw its share price jump in morning trade today (21 January) after booking better-than-expected sales and earnings.
Turnover fell 3% to EUR49.9bn (US$67.55bn) in 2013, reflecting the contribution from discontinued operations. However, Unilever said full-year underlying sales grew 4.3%, beating consensus expectations of 4.2%. After a third-quarter slump, Unilever said fourth-quarter underlying sales rebounded to growth of 4.1%, above a consensus analyst forecast of 3.9%.
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Growth was weighted to the group’s home and personal care businesses, with underlying food sales rising just 0.3% and refreshments gaining 1.1%. In the fourth quarter, the company’s refreshment business faced some significant challenges, including lower ice cream sales in North America.
“Within the categories personal care growth was strong, accelerating to 7.3% in Q4 and momentum in home care was also strong in the final quarter at 6.5%…. However, the foods and refreshment divisions remain more challenging with 1% and minus 1.2% sales momentum respectively, albeit better than the full year average,” Shore Capital analyst Darren Shirley wrote in a note to investors.
In emerging markets, Unilever said fourth-quarter revenues accelerated despite slowing market conditions, with a “step-up” of growth in Turkey, Russia, China and Indonesia.
Group operating profit rose 8% to EUR7.5bn while net profit gained 9% to EUR3.9bn. Profitability was boosted by a 40 basis-point improvement in operating margins.
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By GlobalDataUnilever recorded core earnings per share of EUR1.58 for 2013, above a consensus forecast of EUR1.52, according to Shirley.
Unilever shares had risen 3.12% by 10:03 GMT.
Click here for comments from Unilever CEO Paul Polman on the performance of the company’s under-scrutiny spreads business.
