Unilever beats growth expectations, says financial services firm


Stronger than expected pricing prompted Unilever’s organic sales growth to beat expectations comfortably in Q2, according to financial services firm, Matrix.

Unilever’s sales grew by +7.1% in the second quarter, up from +4.3% in Q1.

According to Matrix, the scale of the acceleration in Q2 was due to substantial pricing, which offset higher input costs. 

Underlying operating profit was in line with expectations, assisted by A&P spend (advertising & promotional spend) as a portion of sales being down from a year earlier. 

Matrix said Unilever’s shares should benefit from the pleasant surprise on top-line growth, even if conversion to underlying EPS expansion was only in line with expectations. 

With a combination of defensiveness and more focused management in charge of its categories, there is scope for decent upside from the current price, it said.