Unilever increases annual outlook after notching up strong sales performance
Consumer goods giant Unilever has upped its annual outlook after notching up its best quarterly sales performance in more than a decade ahead of a £33.8 billion deal to spin off its food business.
The Marmite to Dove soap firm saw shares surge 6% higher in morning trading on Tuesday after Unilever reported a strong performance in its first half, with sales growth ramping up to 5.8% in the second quarter.
This was driven by a 5.5% jump in sales by volume – the highest underlying volume growth for more than 10 years.
Overall sales lifted 0.5% in the first half and pre-tax profits rose 1.8% to 4.66 billion euros (£3.98 billion) in the six months to June 30..
Operating profits rose 2.6% to 4.89 billion euros (£4.17 billion).
Unilever said it now expects full year sales growth within its 4% to 6% medium-term guidance, having previously forecast for it to be at the bottom end of the range.
The group also expects around 3% underlying volume growth, against previous guidance for at least 2% growth for the year.
Its half-year figures come as the group moves to split its food business into a joint venture with US rival McCormick.
The joint venture, which was announced in March, will create a major food giant that combines brands such as Unilever’s Marmite with McCormick’s French’s mustard.