Unilever first quarter sales slump

THE HAGUE, Apr 19 (AFP): Anglo-Dutch consumer giant Unilever Thursday revealed first quarter sales fell compared to last year, announcing a six billion euros ($7.4 billion) buy-back scheme ahead of the spin-off of its spreads division.

Turnover in the first three months was down 5.2 per cent to 12.6 billion euros, falling from 13.3 billion euros reported in the same period in 2017.

But chief executive Pol Polman voiced confidence as the company prepares for some major shake-ups in its 88-year history.

"The first quarter demonstrates another good volume-driven performance across all three divisions," Polman said in a statement, highlighting a 4.0 per cent sales growth in emerging markets. He revealed that a six billion euros buy-back programmememe would be launched in May "to return the expected after-tax proceeds from the spreads disposal. We are raising the dividend by 8.0 per cent, reflecting confidence in our outlook."

The company said in December that it had sealed a 6.8 billion euro deal to sell its spreads division to US private equity giant KRR, and Polman said the move was expected to be completed "in the middle of the year."

Based in Rotterdam, Unilever was founded in 1930 after the Dutch margarine producer Margarien Unie merged with British soapmaker Lever Brothers.

It has over 400 brands in its portfolio, including household names like yeast extract Marmite, PG Tips tea and Persil washing powder, Knorr soup as well as Dove beauty products and Magnum ice-cream.