Unilever said on Thursday that it had achieved stronger-than-expected organic growth in the first quarter, thanks to a combination of price increases and higher sales volumes.
The FMCG giant reported organic growth of 4.4% for the first three months of the year, compared with a 3% rise expected by financial analysts, according to a consensus provided by the company.
This figure includes volume growth of 2.2%, to which a favorable price effect, also of 2.2%, was added.
Deutsche Bank analysts commented this morning: "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.
In a press release, 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 gained over 4% early Thursday morning.
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Unilever PLC (Unilever) is one of the world's leading suppliers of Beauty & Personal Care, Home Care, and Foods & Refreshment products with sales in over 190 countries and reaching 3.4 billion consumers a day. Over half of the company's footprint is in developing and emerging markets. Unilever has over 400 brands found in homes all over the world, including Dove, Knorr, Dirt Is Good, Rexona, Hellmann's, Lipton, Wall's, Lux, Magnum, Axe, Sunsilk and Surf. Unilever's Sustainable Living Plan (USLP) underpins the company's strategy. The USLP creates value by driving growth and trust, eliminating costs and reducing risks. Since 2010 the company has been taking action through the Unilever Sustainable Living Plan to help more than a billion people improve their health and well-being, halve its environmental footprint and enhance the livelihoods of millions of people as it grows its business. Unilever has already made significant progress and continues to expand its ambition - most recently committing to ensure 100% of its plastic packaging is fully reusable, recyclable or compostable by 2025.
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