Unilver beats forecasts with 4.8% rise in sales

CONSUMER GOODS giant Unilever beat forecasts with a 4

CONSUMER GOODS giant Unilever beat forecasts with a 4.8 per cent rise in first-quarter underlying sales yesterday and its new chief executive said it plans to boost sales volumes with a drive on marketing and new products, pushing its shares higher.

Paul Polman, who took over in January having previously worked at rivals Nestlé and Procter and Gamble, said he aimed to drive volumes higher from the second quarter, the group having relied on recent price rises for all of its sales rise in the first three months of 2009.

“We will further step up innovation and brand support from the second quarter and expect this to drive an improved volume performance,” Mr Polman said in a results statement.

Unilever shares jumped 9.3 per cent to £14.36 (€16.08) on relief over the strong sales line after investors were braced for a worse performance and following their underperformance in 2009.

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“Looking forward, life should become easier, volume comparatives ease, fix-it plans will gain traction, commodity headwinds should ease and change should continue to permeate through the organisation,” said Jeff Stent at broker Citi.

The quarterly sales rise from the maker of Sunsilk shampoo and Hellmann’s mayonnaise was ahead of the average market forecast of 4.1 per cent and towards the top end of a 2.8 to 5.8 per cent range for forecasts for the January-March quarter.

Anglo-Dutch Unilever Plc/NV, the worlds third-biggest food and consumer goods group, said the sales rise came from price increases of 6.8 per cent with group quarterly sales volumes down by some 1.8 per cent.