Unilever reaffirms outlook on robust first quarter

(Sharecast News) - Consumer goods giant Unilever reconfirmed its outlook on Thursday, despite heightened macroeconomic activity, following a robust start to the year. First-quarter turnover fell 3.3% to €12.6bn. However, underlying sales growth - which strips out the impact of currency fluctuations - was 3.8%. Volumes rose 2.9% and prices by 0.9%.

The owner of Dove, Lynx, Domestos and Hellmann's, among many others, said its leading power brands had driven growth across business groups.

It also flagged broad-based momentum in emerging markets, including strong trading in India and a "good" recovery in Latin America.

Chief executive Fernando Fernandez said: "We have started the year well.

"We continue to move at speed to build a simpler, sharper Unilever with a structurally higher growth profile and a brand portfolio fit for the future. Despite heightened macroeconomic uncertainty, the progress we are making to elevate our brands...and improve operational execution means we remain confident of delivering on our guidance for the year ahead."

The blue chip is forecasting underlying sales growth at the bottom end of its multi-year guidance range of 4% to 6%, with at least 2% volume growth, and a "modest" improvement in underlying operating margin.

Unilever is overhauling its portfolio to focus on its core brands. Last year it spun out The Magnum Ice Cream Company and in March announced an agreement to combine its food business with American spice maker McCormick & Company, which is slated to realise around $600m of annual run rate cost synergies.

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