Unilever reports higher-than-expected sales despite late Easter

Consumer goods maker Unilever reported higher-than-expected first-quarter underlying sales today, despite a later Easter holiday and a slowing in some emerging markets.

The Anglo-Dutch maker of Ben & Jerry’s ice cream, Dove soap and Lipton tea also announced a strategic review of its North American pasta sauce business, which includes the Ragu brand, and the SlimFast brand.

“It may lead to a disposal but it doesn’t necessarily have to,” Chief Financial Officer Jean Marc Huet said. “We’re looking at all options.” First-quarter revenue fell 6.3 per cent to €11.4 billion , due to an 8.9 per cent hit from currency exchange rates that was bigger than analysts had expected.

Underlying sales, which exclude the impact of foreign exchange and acquisitions and disposals, rose 3.6 per cent. On that basis, analysts had on average forecast growth of 3.3 per cent. Sales in emerging markets rose 6.6 per cent, slower than the 8.4 per cent growth in the fourth quarter but still greater than the overall market, which Mr Huet said rose about 5 per cent.

Unilever said it still aims to achieve full-year sales volume growth ahead of the wider market, core operating margin improvement and strong cash flow. In January it forecast annual sales growth of 3 to 5 per cent versus 3 per cent for the market.