Unilever Q1 sales jump after good start to 2007

London, May 3: Consumer goods giant Unilever Plc/NV reported first-quarter underlying sales rose a higher-than-expected 5.7 per cent today after a good start to 2007 and said it was confident of meeting its targets.

Anglo-Dutch Unilever, which makes Sunsilk shampoo, Dove soap and Knorr soups, reported the underlying sales rise for the first three months of 2007 well above analyst forecasts for a 3.4 to 4.2 per cent rise.

Quarterly earnings per NV share rose 2 per cent to 0.35 euros (London, May 3: Consumer goods giant Unilever Plc/NV reported first-quarter underlying sales rose a higher-than-expected 5.7 per cent today after a good start to 2007 and said it was confident of meeting its targets.

Anglo-Dutch Unilever, which makes Sunsilk shampoo, Dove soap and Knorr soups, reported the underlying sales rise for the first three months of 2007 well above analyst forecasts for a 3.4 to 4.2 per cent rise.

Quarterly earnings per NV share rose 2 per cent to 0.35 euros ($0.48) against analysts' forecasts of 0.27 to 0.36 euros.

The world's third-largest consumer goods group has set its 2007 target to see underlying sales to grow 3 to 5 per cent with operating margins above 2006's 13.6 per cent.

''We have had a good start to 2007, with broad-based sales growth across regions and categories and improved margin development driven by home and personal care,'' said Chief Executive Patrick Cescau in a results statement.

Despite a significant rise in agricultural commodity costs which may prompt price rises, Cescau added.

''I am confident, however, that the combined benefits of organic growth in our 3-5 per cent guidance range and improved efficiency leaves us well placed to achieve our margin objectives for 2007.'' First-quarter operating margins rose 0.4 percentage points to 13.7 per cent.

Unilever has been on a steady recovery path since its shock profits warning in September 2004 as it increases spending behind its top brands which includes Hellmann's mayonnaise, Lipton tea and Omo detergents, and cuts cost around the world.

But the 5.7 per cent underlying sales rise still pales beside growth at European rivals with Danone showing 10.1 per cent growth, Reckitt Benckiser's 10 per cent and Nestle's 7.2 per cent in the first three months of 2007.

Reuters.48) against analysts' forecasts of 0.27 to 0.36 euros.

The world's third-largest consumer goods group has set its 2007 target to see underlying sales to grow 3 to 5 per cent with operating margins above 2006's 13.6 per cent.

''We have had a good start to 2007, with broad-based sales growth across regions and categories and improved margin development driven by home and personal care,'' said Chief Executive Patrick Cescau in a results statement.

Despite a significant rise in agricultural commodity costs which may prompt price rises, Cescau added.

''I am confident, however, that the combined benefits of organic growth in our 3-5 per cent guidance range and improved efficiency leaves us well placed to achieve our margin objectives for 2007.'' First-quarter operating margins rose 0.4 percentage points to 13.7 per cent.

Unilever has been on a steady recovery path since its shock profits warning in September 2004 as it increases spending behind its top brands which includes Hellmann's mayonnaise, Lipton tea and Omo detergents, and cuts cost around the world.

But the 5.7 per cent underlying sales rise still pales beside growth at European rivals with Danone showing 10.1 per cent growth, Reckitt Benckiser's 10 per cent and Nestle's 7.2 per cent in the first three months of 2007.

Reuters>