Volumes up and turnover down at Unilever

FTSE 100 consumer goods company Unilever reported growth in underlying sales and volume on Thursday, though its top line declined in its first quarter update.

Underlying sales growth was up 4.7%, with emerging markets up 8.3%, while underlying volume grew 2.6% and pricing advanced 2%.

Unilever’s turnover declined 2%, however, to €12.5bn (£9.96bn), which included a negative currency impact of -7.1%.

Turnover in personal care totalled €4.8bn, foods were €3.1bn, home care turnover was €2.4bn, and refreshment was €2.2bn.

The group’s board declared a quarterly dividend of €0.3201 per share, an increase of 6%.

“The first quarter demonstrates a strong volume-driven performance, following on from a good delivery in 2015,” said Unilever chief executive officer Paul Polman.

“We are maintaining momentum despite a tougher external environment, with all four categories gaining market share. This broad-based growth, including over 8% in emerging markets, shows the validity of our strategy, portfolio management and a step-up in innovation.”

Polman said that, with markets remaining volatile, Unilever was focusing in driving agility and resilience in its business through a number of key programmes - net revenue management, zero based budgeting and the next stage in the firm’s ‘continued organisational transformation’.

“This will position us well to deliver another year of volume-driven growth ahead of our markets, steady improvement in core operating margin and strong cash flow.

“These underpin sustained long-term value creation for our shareholders,” he added.