Unilever ups Q4 dividend as growth picks up

Unilever increased its fourth-quarter dividend as the consumer goods company reported improved underlying sales growth.

The maker of Marmite and Dove soap raised the dividend by 4% to €0.4268 per share for the three months to the end of December from a year earlier. Underlying operating profit for the year fell 5.8% to €9.4bn (£8.3bn) as revenue dropped 2.4% to €50.7bn.

At constant exchange rates underling operating profit rose 0.7%. Underlying sales growth was 3.5% in the fourth quarter and 1.9% for the year.

The FTSE 100 company’s growth was driven by sales of hand and home hygiene products such as Domestos and Lifebuoy, laundry and in-home food and refreshments. This growth offset falling sales of food “solutions”, out-of-home ice cream and grooming products such as shampoo and deodorant during Covid-19 lockdowns.

Unilever reported its results as it set out plans for growth including accelerating growth in the US, India and China and investing in high growth. The company also targeted underlying sales growth of 3-5%, profit growth ahead of sales growth, €2bn of savings and €1bn of restructuring investment over two years.

Chief Executive Alan Jope said: “In a volatile and unpredictable year, we have demonstrated Unilever's resilience and agility through the Covid-19 pandemic. Today we are setting out our plans to drive long term growth.

“While volatility and unpredictability will continue throughout 2021, we begin the year in good shape and are confident in our ability to adapt to a rapidly changing environment."