Foodservice
Unilever Q3 sales increase boosted by strong at-home business
October 23, 2020
Unilever, a manufacturer of food and hygiene products with brands such as Ben & Jerry's and Magnum, reported Q3 sales of 12.93 billion euros ($15.29 billion), beating expectations by 240 million euros ($283.72 million), according to Seeking Alpha.
Quarterly shareholder dividend for the company, based in London and Rotterdam, maintained at €0.41 euros (48 cents) per share.
Shares traded at $61.57 Thursday against a 52-week high of $63.89.
Underlying sales growth, the increase in turnover for the period excluding any change in turnover resulting from acquisitions, disposals, changes in currency and price growth in excess of 26% in hyperinflationary economies, was 4.4% over the prior year's third quarter, surpassing the 1.3% analysts predicted, while the sales of 12.93 billion euros ($15.29 billion) beat expectations of 12.7 billion euros ($15.01 billion), according to the Financial Times.
Foods and refreshment underlying sales grew 3.7%, with 1.8% from volume and 1.8% from price, according to the company earnings report. Underlying sales grew 3.8% for beauty and personal care and by 6.7% for home care products.
The company's retail foods business grew double digits and tea saw mid-single digit growth as in-home eating occasions continued at elevated levels, according to the earnings report.
At-home ice cream sales grew the mid-teens growth, led by Ben & Jerry's and Magnum, which more than offset the decline in out-of-home ice cream sales.
The foodservice channel remained fully or partially closed in many markets and foodservice sales declined by over 20%, the report said, however, trends are improving with China now returning to growth.
"We have delivered a strong performance this quarter," CEO Alan Jope said in the report. "Volume-led growth shows the resilience of our portfolio and our agility in responding to rapidly changing dynamics across consumer segments, geographies and channels."
"The environment we are operating in will remain unpredictable in the near term, so we will continue to maintain the speed and agility of our response," he said. "Our focus remains volume-led competitive growth, delivering absolute profit and free cash flow."
