- Unilever plc (OTCMKTS:UNLYF) (LON:ULVR) has released a Q1 trading statement that shows the group pushing underlying sales ahead by 5.7%, a rate that was 2% ahead of consensus.
Q1 2021 hedge fund letters, conferences and more
- Growth was driven by almost 10% sales growth in Asia and emerging markets, accompanied by strong demand for Unilever’s Food & Refreshment offerings.
- The market reacted to the numbers by pushing the shares over 2% higher in early trading.
Unilever Is On Track To Grow Sales
Commenting on the numbers, Steve Clayton, manager of the HL Select UK Shares funds, which hold positions in Unilever said:
“These are encouraging numbers. Unilever is on track to grow sales in line with its targets for the year and increase margins along the way, despite the costs of coping with Covid. Cash flow, the most important metric in the long run is good, allowing the group to launch a £3bn share buy-back. Unilever gains much of its strength through the group’s diversity. It sells globally, so in times like these, when European sales are in decline, growth in the UK and Asia can pick up the slack. It’s three divisions cater for different needs and this year, demand for in-home foods and cleaning products are leading the way, even if demand for ice cream is still impacted by lockdowns around the world.
Unilever kept paying dividends through the worst of the crisis and today’s announcement of a 37.6p per share quarterly payment is a 4.1% increase versus last year. That shows the quality of the business. Unilever will never be the fastest-growing business in a portfolio, but it is one of the most dependable and over time, the value of those dividend payments and steady growth in the scale of the business add up.”
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