July 25 (Reuters) - Unilever ( UL ) beat first-half
profit expectations on Thursday boosted by resilient pricing
even as sales growth disappointed.
Shares in the maker of Dove soap and Hellmann's condiments
rose 6.8% in early trade to the top of London's FTSE 100 index
.
Unilever ( UL ) posted a 3.9% rise in second-quarter underlying
sales, below the 4.2% increase expected by analysts in a
company-compiled consensus.
It maintained its full-year underlying sales growth forecast
of 3% to 5%, mostly driven by volume, while its forecast for an
underlying operating margin of at least 18% was stronger than
the market view.
Switzerland's Nestle also reported lower than
expected half-year sales growth on Thursday and lowered its full
year outlook.
"There is much to do, but we remain focused on transforming
Unilever ( UL ) into a consistently higher performing business," CEO
Hein Schumacher said in a statement.
After a protracted global cost of living crisis, some
consumer goods makers have been easing their price increases,
hoping to attract back shoppers who traded down to cheaper,
often private label products.
Unilever's ( UL ) underlying price growth for the quarter was less
than expected at 1%, but underlying volume sales growth ran
ahead of estimates at 2.9%.
The industry has struggled with soaring costs for several
years, with everything from sunflower oil and shipping to
packaging, grain and energy becoming more expensive during and
in the wake of the pandemic and Russia's invasion of Ukraine.
Unilever's ( UL ) underlying operating profit rose 17% to 6.1
billion euros ($6.61 billion) for the six months to June,
beating market expectations of 5.44 billion euros.
Its underlying operating margin widened 250 basis points to
19.6%, although the company expects that to slow in the second
half.
($1 = 0.9226 euros)