Unilever Sales Beat Forecasts, Shares Jump

Consumer goods group Unilever Unilever  beat forecasts with a 4.8 percent rise in first-quarter underlying sales on Thursday and said it plans to step up innovation and brand support from the second quarter.

The rise in quarterly underlying sales from the maker of Knorr soups, Dove soap and Sunsilk shampoo was ahead of an analyst consensus forecast of 4.1 percent and towards the top of a 2.8 to 5.8 percent range for the January-March quarter.

Its shares closed 9.8 percent higher in London.

The sales improvement came from price increases of 6.8 percent as group quarterly volumes fell by some 1.8 percent.

"First-quarter results were solid given today's trading environment, with growth of 4.8 percent and underlying margins maintained, before dilution from disposals," said Chief Executive Paul Polman in a statement.

"We will further step up innovation and brand support from the second quarter and expect this to drive an improved volume performance," he added.

Anglo-Dutch Unilever, the world's third-biggest food and consumer goods group, shocked investors in February by scrapping all its targets due to global economic uncertainty and saying it could not give a 2009 outlook in current conditions.

Polman joined Unilever at the start of 2009 after working for Unilever's two bigger rivals Procter and Gamble and Nestle and will try to lift the group from its underperformance against its peers.

The group, whose 400 brands also include Hellmann's mayonnaise, Ben & Jerry's ice cream and Omo detergent, posted first-quarter earnings per share down 13 percent at 0.30 euros, due to disposals, compared with forecasts of around 0.32 euros.

Unilever shares have underperformed the FTSE 100 index by nearly 20 percent and the DJ Stoxx Food and Beverage Index by over 15 percent so far this year.

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