Unilever (LON:ULVR) share price up 3% as emerging market growth lifts sales

The British-Dutch consumer goods company saw its share price rise after unveiling strong emerging market growth helped boost sales in its Q1 trading update.

Unilever Source: Bloomberg

Unilever (LON:ULVR) saw its share price rally more than 3% on Thursday morning after it started the year on a high, unveiling strong emerging market growth that helped boost sales in its Q1 trading results.

‘We have delivered a solid start that keeps us on track for our full year expectations,’ Unilever CEO Alan Jope said. ‘Growth was led by emerging markets and was balanced between volume and price.’

Unilever results: key figures

Unilever saw underlying sales growth of 3.1% with the company recording a 1.2% increase in sales volumes and 1.9% increase in prices.

Emerging markets were responsible for the lion share of its sales growth, with the segment seeing a 5% rise, helping the company increase its revenues by 1.6%.

‘Accelerating growth is our number one priority,’ Jope said. ‘It requires both great execution and a continued strategic shift into faster growth segments and channels.’

‘We saw good performance in key growth channels including out of home and e-commerce and benefited from stronger global innovations and faster and more relevant local innovation,’ he added.

Following its strong start to 2019, the company announced a 1.6% increase to its quarterly dividend to €0.4104 a share.

Unilever on pace to hit 2019 targets

For the full year the company expects underlying sales growth to come in the lower half of its multi-year 3% - 5% range, representing the improvement the business has seen in its underlying operating margin, helping Unilever stay on track to hit its 2020 target and record another year of strong free cash flow.

Emerging markets improved slightly compared with the Q4 last year, led by South East Asia and Brazil. In India markets grew well albeit slightly slower than the Q4, with high inflation weighing on global market volume growth. Unilever admitted that growth remains weak in developed markets.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.