Consumer goods giant Unilever reported first-quarter underlying sales rose a higher-than-expected 5.7 per cent today.
The jump in underlying sales in the first three months of 2007 by the world's third-largest consumer goods group was well above analyst forecasts for a 3.4 to 4.2 per cent rise.
Shares in the firm were expected to open higher after reporting a good start to 2007 with sales and profit margins rising despite the group warning it was seeing a big rise in agricultural commodity prices, analysts said.
The group has set its 2007 target to see underlying sales to grow 3 to 5 per cent with operating margins above 2006's 13.6 per cent. First-quarter operating margins rose 0.4 percentage points to 13.7 per cent.
Unilever has been on a steady recovery path since its shock profits warning in September 2004 as it increases spending behind its top brands - which include Hellmann's mayonnaise, Lipton tea and Omo detergents - and cuts cost around the world.