Unilever 1Q 2018 Revenue Falls; Announces EUR6 Billion Buyback Program

By Maryam Cockar 
 

Unilever PLC (ULVR.LN) said Thursday that revenue for the first quarter of 2018 fell 5.2% due to adverse currency movements and the impact of disposals, and that it will return 6 billion euros ($7.43 billion) to shareholders.

The group, whose brands include Dove soap and Ben & Jerry's ice cream, said revenue for the quarter was EUR12.60 billion compared with EUR13.30 billion in the same period a year earlier. Revenue, excluding the spreads business the company recently sold, was EUR11.90 billion.

Underlying sales, which strips out the impact of foreign-exchange movements, grew 3.4% compared with 2.9% growth the previous year. Excluding the spreads disposal, underlying sales growth was 3.7%.

The FTSE 100-listed company's underlying sales growth was 5.1% in emerging markets, down from the 6.1% growth reported a year earlier. In developed markets, sales declined by 1.1%, a deterioration from the 1.5% fall last year.

The company said it will start a share buyback program of up to EUR6 billion in May in order to return the expected after-tax proceeds from the spreads disposal to shareholders.

Unilever raised the quarterly dividend to EUR0.3872 a share from EUR0.3585.

Chief Executive Paul Polman said for 2018 Unilever continues to expect underlying sales growth in the range of between 3% and 5%, and an improvement in underlying operating margin and cash flow to keep the group on track to meet its 2020 goals.

Write to Maryam Cockar at [e-mail]

(END) Dow Jones Newswires

April 19, 2018 02:50 ET (06:50 GMT)

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