THE WHAT? Unilever has announced its results for fiscal 2021. The UK-based FMCG manufacturer reported underlying sales growth of 4.5 percent, its steepest incline in nine years.
THE DETAILS Turnover was up 3.4 percent and underlying operating profit increased 2.9 percent. Underlying EPS inched forward 5.5 percent.
The manufacturer of Dove announced the sale of its tea business for €4.5 billion too, with completion slated for the second half of the year. In addition, it backpaddled on previous plans to pursue a major acquisition, instead Unilever will pursue a share buyback programme of up to €3 billion over the next two years in an attempt to placate shareholders who were up in arms over the owner of Lifebuoy’s bid for GSK’s consumer unit.
THE WHY? CEO, Alan Jope commented, “The acceleration of Unilever’s operating performance continues. We delivered our fastest underlying sales growth for nine years – 4.5 percent for the full year, with 1.6 percent from volume.
“Our thirteen billion-Euro brands grew 6.4 percent. Priority markets of China, India, and the US grew at 14.3 percent, 13.4 percent, and 3.7 percent respectively. Our growth in e-commerce was 44 percent, ahead of global channel growth and bringing e-commerce to 13 percent of turnover. We have continued to re-shape our portfolio into high growth spaces, acquiring in Prestige Beauty and Functional Nutrition, and agreeing the sale of our Tea business.
“The major challenge of 2021 has been the dramatic rise of input costs. We responded with pricing actions, delivering underlying price growth of 2.9 percent for the year, accelerating to 4.9 percent in the fourth quarter, with full year underlying operating margin down 10bps and underlying earnings per share up 5.5 percent.”
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