CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Unilever sees 3.8% rise in third-quarter sales

The Anglo-Dutch consumer goods company saw sales boosted by summer heatwave in Europe and double-digit growth in Brazil

IG Analyst

Publication date : 2018-10-18T10:44:45+0100

Unilever

Source: Bloomberg

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.

But despite the difference of opinion, the company’s share price has remained relatively flat, while rivals Nestle and Danone have witnessed declines of 5% and 11%, respectively.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.