Unilever, the world's second- biggest consumer-goods company, reported first-quarter revenue growth that beat estimates, led by increased selling volumes.
So-called underlying sales, which exclude acquisitions, disposals and currency fluctuations, rose 8.4 per cent from a year earlier, the maker of Dove soap said today in a statement.
The average estimate of 30 analysts surveyed by Unilever was for a 6.4 per cent gain.
Units sold increased 3.5 per cent, more than double the 1.6 per cent gain estimated by analysts.
The group, which also makes Knorr products and Magnum ice cream has raised prices to counter soaring costs of commodities such as edible oils, and the company said today that those elevated costs "persist".
Higher price tags have deterred consumers in developed markets such as Europe and North America, which make up 44 per cent of sales. In developed markets, sales were 4.2 per cent higher for the quarter.
"Our performance is pleasing given struggling economies, continued fragile consumer confidence and competitor activity," chief executive Paul Polman said in the statement. "We remain on track to deliver a modest improvement in full-year core operating margin, weighted towards the second half."
Underlying sales rose 10 per cent in the personal-care segment and a similar amount in the home-care unit during the quarter. Food revenue was 5.9 per cent higher.
Total sales advanced 12 per cent to €12.1 billion. Analysts had estimated revenue of €11.9 billion.
Separately today, Colgate-Palmolive posted a higher quarterly profit that met analysts' expectations as it increased advertising and cut costs to mitigate the impact of foreign currency fluctuations.
The toothpaste maker also stood by its forecast for the year and said it remains comfortable with analysts' expectations.Colgate earned $593 million, or $1.23 per share, in the first quarter, up from $576 million, or $1.16 per share, a year earlier.
Excluding charges related to cost cuts and the sale of land in Mexico, Colgate earned $601 million, or $1.24 per share, in the latest quarter. The profit matched analysts' expectations of $1.24 per share, according to Thomson Reuters.
Its sales rose nearly 5.2 per cent to $4.20 billion, slightly better than the $4.18 billion expected by analysts.
Organic sales, which strip out the impact of foreign exchange, acquisitions and divestitures, rose 6.5 per cent, the largest increase Colgate has seen in seven quarters. The volume of goods sold and pricing each rose 3.5 per cent.
Colgate gets most of its revenue from outside the United States. While growth in Latin America, its largest market, has helped, a stronger U.S. dollar cuts into its profits.
Bloomberg, Reuters
