Unilever shares fall on 'subdued' outlook, earnings miss
Multinational consumer goods company Unilever on Thursday said it expected a slow start to the current financial year with “subdued” market growth in the near term and announced a €1.5bn share buyback, while fourth-quarter underlying sales just missed estimates.
13 February 2025 10:05:28
Source: Sharecast
Underlying sales grew 4%, compared with forecasts of 4.1% in a company-compiled poll. Unilever now expects full year 2025 growth within its multi-year range of 3% - 5%. Unilever shares fell 7% in London trade.
Full-year underlying sales grew 4.2% versus a consensus of 4.3%, driven by volume growth of 2.8%. Underlying operating margins came in at 18.4% against the estimated 18.3%.
“We expect the market and our growth to improve during the year as price increases, reflecting higher commodity costs in 2025. We expect a more balanced split between volume and price,” the maker of Dove soap said.
“Market growth, which slowed throughout 2024, is expected to remain soft in the first half of 2025,” he added.
It added that the ice-cream business, which includes the Ben & Jerry’s and Magnum brands, would be separated via a demerger and listed in Amsterdam, London and New York.
Reporting by Frank Prenesti for Sharecast.com