Unilever Stock Gains

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Unilever Stock Gains

Unilever Stock Gains 4% On Strong Sales Growth

Unilever has managed to beat the sales forecast for Q1 as it appears that the company has won its customers back once again.

Earlier, a lot of the customers of Unilever had moved towards other cheaper alternatives due to high inflation around the globe. Now that the disinflation trend has picked pace, many of these customers are returning back to Unilever-backed products.

Unilever Reports 4.4% Sales Growth

After the release of sales numbers for Q1, a 4% upside was seen in the shares of Unilever. Overall, the company reported sales growth of +4.4% which was higher than the 3% forecast.

Sales volume, which is another key indicator also showed a jump of 2.2% which makes the 2nd quarter in a row of consistent growth.

It appears that a lot of companies in the consumer goods sector are struggling to win back the lost volumes due to higher inflation and geopolitical tensions.

That's why Unilever's CEO believes that they can continue to deliver strong growth in terms of sales and volume in the next few quarters.

For now, the Unilever (ULVR) sales growth is in the range of around 3 - 5% with the bulk of it coming from the volumes. Earlier, the company was looking forward to a balance between the price and volume.

In the year 2023, price hikes by Unilever experienced a slowdown and it appears that the same trend is now continuing in Q1 2024.

Back in October 2023, Unilever announced a plan known as GAP or 'Growth Action Plan.' Under this plan, Unilever invested in some of its top brands which are responsible for almost 70% of the sales.

Fast forward to today, it appears that Unilever's plan to fuel the sales volume has started to show its effect after all. However, it would still be too soon to celebrate considering the disinflation path is still full of hurdles.

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