Proactive Investors - Unilever PLC (LON:ULVR) reported underlying sales growth in the fourth quarter as it launched a new $1.5 billion share buyback.
The FTSE 100-listed firm which makes Hellmann’s mayonnaise and Dove soap said underlying sales in the fourth quarter rose 4.7% to €14.2 billion, although on a GAAP reported basis sales fell 3.0%.
For 2023 as a whole, underlying sales growth was 7% to €59.60 billion while operating profit fell 9.3% to €9.76 billion.
Chief Executive Hein Schumacher said there was more to do.
"Today's results show an improving financial performance, with the return to volume growth and margins rebuilding.”
“However, our competitiveness remains disappointing and overall performance needs to improve.”
Beauty & Wellbeing saw underlying sales rise 7.9% compared to last year, Personal Care sales rose 6.4% and Nutrition sales rose 4.7%. Ice cream sales dropped 0.4%.
Volume growth for the group accelerated to 1.8% in the fourth quarter, with 3.9% volume growth from the 30 Power Brands.
But underlying price growth decelerated from 10.7% in the first quarter to 2.8% in the fourth quarter, reflecting lower net material inflation in the second half.
Nutrition and Ice Cream faced the highest input cost inflation in 2023 which translated into higher pricing.
A new €1.5 billion buyback was approved to be conducted during 2024.
Unilever said the 30 Power Brands (around 75% of turnover) were accretive to growth and margin, with underlying sales up 8.6%.
The company expects underlying sales growth for 2024 to be within its multi-year range of 3% to 5%, with more balance between volume and price.
It also anticipates a modest improvement in underlying operating margin for the full year.
A quarterly dividend of €0.4268 per share was declared.
A new €1.5 billion buyback was approved to be conducted during 2024.
Unilever said the 30 Power Brands (around 75% of turnover) were accretive to growth and margin, with underlying sales up 8.6%.
The company expects underlying sales growth for 2024 to be within its multi-year range of 3% to 5%, with more balance between volume and price.
It also anticipates a modest improvement in underlying operating margin for the full year.
A quarterly dividend of €0.4268 per share was declared.