Unilever PLC (NYSE:UL) shares are trading higher after it reported an underlying sales growth of 7.0% in FY23, with a 6.8% price increase and a 0.2% rise in volume.
Turnover decreased 0.8% Y/Y to €59.6 billion on reported basis, with decline of 5.7% from currency and 1.7% from net disposals.
Segment Sales: Beauty & Wellbeing grew underlying sales by 8.3% Y/Y, Personal Care underlying sales were up 8.9% Y/Y, Home Care increased 5.9% Y/Y, and Nutrition climbed 7.7% Y/Y, while Ice Cream underlying sales fell 2.3% Y/Y.
Gross margin increased by 200 basis points to 42.2% on tightened costs and improved net productivity.
Underlying operating profit was €9.9 billion, a 2.6% increase Y/Y, with margin improved by 60 basis points to 16.7%.
Underlying EPS stood at €2.60, up 1.4% Y/Y in the year.
The percentage of businesses winning market share on a rolling 12 month-basis has reduced to 37%, reflecting share losses to private labels in Europe, consumer shifts to super-premium segments in North America, and a significant reduction of unprofitable SKUs globally.
In 2023, the company returned €5.9 billion to shareholders through dividends and share buybacks.
Unilever completed the final two €750 million tranches of its €3 billion share buyback program in FY23 and approved a new share buyback program of up to €1.5 billion for FY24, which is expected to commence in the second quarter.
Outlook: Unilever expects FY24 underlying sales growth to be within its multi-year range of 3% to 5%, balanced between volume and price.
Also, the company projects a modest improvement in underlying operating margin, with gross margin expansion led by higher productivity and net material inflation returning back to more normal levels.
Also Read: Unilever’s Glamorous Exit: Elida Beauty Finds a New Home With Yellow Wood Partners
Price Action: UL shares are up by 3.39% at $50.56 in premarket on the last check Thursday.
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