Unilever Lifts Volume Forecast as Third-Quarter Sales Beat Estimates

what happened

Unilever, the consumer goods group behind Dove soap and Axe deodorant, reported third-quarter turnover of 13.3 billion euros, or about $14.80 billion, according to Dow Jones Newswires. Underlying sales rose 5.2% over the period, ahead of the 4.8% analysts had expected.

Volume growth reached 2.9% in the quarter, compared with a 2.5% analyst estimate, while price increases contributed 2.3%. On the strength of that result, the company raised its full-year view and now anticipates underlying volume growth of at least 3%. In July it had projected roughly 3%.

Management also said it expects underlying sales growth in the second half to be around 5%, and it kept its wider full-year range of 4% to 6%.

why it matters

For a company of Unilever's size, beating forecasts on both sales and volumes, while also raising its volume target, matters for the whole consumer staples sector. Stronger volumes suggest shoppers are still buying despite higher prices, a point investors watch closely in the category.

market impact

Unilever shares and consumer staples: volume beat and higher guidance support the stock

• ▲Unilever shares pressure up — volume growth beat estimates and the full-year volume outlook was raised

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