First time in three months, sales of the household goods giant, Unilever, lifted as the price increased.
On the other hand, other household brands such as The Anglo-Dutch owner of Dove, Ben & Jerry’s are reporting low sales growth of 2.9%. The firm said its long-term growth has been vindicated by the quarterly growth. And, in February of this year, a takeover by US rival Kraft Heinz rebuffed it.
Chief executive Paul Polman said: “The first quarter shows growth once more ahead of our markets. This reflects our continued investment in both innovations and brand support and reconfirms the strength of our long-term sustainable compounding growth model.”
Unilever earlier said that it would see to cut the costs or spin off its struggling spreads business. This includes Flora and Stork. And, excluding this unit, Unilever’s underlying sales were 3.4%. It is expected to give sales growth of 3% to 5% for the year.
“Unilever have been pushed by the Kraft Heinz approach into a more radical pace and scale of change than they had originally chosen for themselves,” Steve Clayton, fund manager of the HL Select equity funds, wrote in an analyst note.
“We think the group has enormous potential to steadily boost returns whilst compounding sales over time.”