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.
Unilever reported promising third-quarter (Q3) 2018 results, with sales growth of 3.8% generating €12.5 billion in revenues, up 4.8% from the same period last year and only marginally below analysts’ estimates of €12.56 billion.
Growth accelerated across all three of the company’s core divisions – foods and beverages, cosmetics and home care – with the summer heatwave in Europe boosting ice cream sales in a year where the company introduced a new Kinder product.
‘We were able to increase prices whilst still maintaining good volume growth which reflects the strength of our brands and quality of our innovation programme,’ CEO Paul Polman said in a statement.
‘We continue to expect underlying sales growth in the 3% - 5% range, an improvement in underlying operating margin and strong cash flow. We remain on track for our 2020 goals,’ he added.
In Latin America the company reported sales growth of 1.5%, with Brazil posting particularly strong results with sales up 10%, bolstered by a recovery from the truckers’ strike in the second quarter and a return to positive price growth.
The strong set of results come only weeks after the company’s management team were forced to bail on their plan to move its headquarters from London to Rotterdam after shareholders voted against the idea as it would mean Unilever dropping out the FTSE 100 index.