Unilever announced a 3bn (£2.2bn) share buyback as the consumer goods company predicted first-half sales growth near the top of its target range.
Underlying sales rose 5.7% in the first quarter and turnover fell 0.9% to 12.3bn, the FTSE 100 group said in a trading update. Turnover declined because of currency movements, Unilever said.
Sales growth was mainly down to higher volumes, which accounted for 4.7%, with prices accounting for a 1% increase. Underlying sales in the first half will rise at a rate near the top of the 3-5% range that is Unilever’s long-term target.
The maker of Dove soap and Marmite spread announced a dividend of 0.4268 per share for the three months to the end of March and said it would buy back up 3bn of its own shares in 2021.
Alan Jope, Unilever’s chief executive, said: “Unilever has made a good start to the year. Our focus on operational excellence, innovation, and purposeful brands is continuing to strengthen competitiveness and has delivered underlying sales growth of 5.7% for the quarter. Following another year of strong cash flow delivery, Unilever’s Board has approved a share buyback programme of up to 3bn.”
