Results round-up

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.

Full year results from JD Sports Fashion were well ahead of market expectations, which combined with confidence about continued growth to send the company's shares to a new peak.

On revenue up 20% to £1.8bn in the year to 31 January, operating profits jumped 56% to £158.9m and profit before tax by 45% to £131.6m.

Results from the sports fashion division, which includes stores under the JD, Size?, Scotts and several other fascias, were outstanding, with like-for-like store sales growth topping 10% for the second consecutive year, helping drive growth in operating profits before exceptional items 49% higher to £162.9m.

Outdoor stores cut operating losses before exceptional items 44% to £4m, with Blacks and Millets fascias breaking even despite the challenging market and the loss stemming from trials of newer larger space Ultimate Outdoors stores.

Adjusted earnings per ordinary share before exceptional items have increased by 58% to 61.34p, with basic EPS up 43% at 50.16p.

A proposed final dividend of 6.20p hiked the total payment 5% to 7.40p per share.

On the new financial year, the comment was: "We are encouraged by the continued positive trading across our core fascias in the year to date and the board continues to believe that the group is very well positioned for profitable growth."

Broker Peel Hunt said this rhetoric was "as strong as we could have hoped" and led it to add £10m to each of its next two years' profit forecasts.

Cantor Fitzgerald was just as bullish, predicting another re-rating even though the stock has more than doubled over the last year at the same time as consensus estimates have risen by 40%.

"The stock is still undervalued, in our view, despite significant outperformance over the last year. There are no signs of any concerns on the horizon and we are reasonably confident that the positive momentum can continue."