Unilever Earnings: ULVR Stock Jumps on Strong First-Half Earnings
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Unilever Earnings: ULVR Stock Jumps on Strong First-Half Earnings

Story Highlights

British FMCG giant Unilever reported its financial numbers for the first half of 2024 today.

Unilever PLC (UL) (GB:ULVR) today reported strong half-yearly earnings for 2024. Post-announcement, the share price gained 7% at the time of writing. The stock has risen by about 26% over the past six months.  

Unilever is a leading consumer goods company offering a diverse range of products across nutrition, hygiene, and personal care segments.

First-Half Performance

For the first half of 2024, the company posted underlying sales growth of 4.1%, which missed the average analyst forecast of 4.4%. Its underlying volumes rose to 2.6%. The volume growth was mainly driven by the company’s power brands, which contribute 75% of its turnover.

Meanwhile, revenues increased by 2.3% to €31.12 billion ($33.74 billion), above analysts’ forecasts of €30.99 billion. The operating profit grew by 17% to €6.1 billion, supported by a 250 bps margin hike to 19.6%.

The company also increased its quarterly dividend by 3% and commenced a €1.5 billion share buyback program.

Guidance

In terms of outlook, Unilever expects its full-year underlying sales growth to come in the range of 3% and 5%. Additionally, Unilever expects an underlying operating margin of at least 18%.

Is Unilever a Good Stock to Buy?

After the half-yearly earnings update, analysts from UBS and Jefferies maintained their Sell ratings on ULVR stock.

Overall, ULVR stock has received a Hold consensus rating based on 12 recommendations, including two Buy, five Hold, and five Sell recommendations. The Unilever share price target is 4,495p, which is 3.42% below the current trading price.

See more ULVR analyst ratings

Disclosure  

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