The Unilever plc (LON: ULVR) share price rose 3.84% after releasing its final results for the 2023 financial year. The British multinational fast-moving consumer goods company reported a 7.0% increase in underlying sales growth driven by a modest volume growth of 0.2% over the fiscal year and a notable 1.8% increase in the fourth quarter.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company reported a turnover of €59.6 billion, facing challenges such as a 5.7% negative impact from currency fluctuations and a 1.7% decrease due to net disposals.
The underlying operating margin saw a significant rise of 60 basis points, reaching 16.7%. This improvement was highlighted by a 200 basis point increase in gross margin throughout the year and a substantial 330 basis point rise in the latter half.
Despite a 9.6% negative impact from currency variations, the underlying earnings per share (EPS) grew by 1.4%, with an 11% increase on a constant currency basis. The diluted EPS experienced a 14.2% decline compared to the previous year, which included a €2.3 billion profit from the sale of the Tea business.
The company achieved strong cash conversion at 111%, with free cash flow rising by €1.9 billion to reach €7.1 billion.
A new share buyback program worth €1.5 billion is set to start in the second quarter. The company made significant progress in its Growth Action plan, which includes Implementing the plan across the organisation by a new leadership team.
The 30 Power Brands, accounting for approximately 75% of turnover, contributed positively to growth and margin, with underlying sales increasing by 8.6%. Investment in brand and marketing was ramped up by 130 basis points to 14.3%, focusing on the 30 Power Brands.
The portfolio was actively optimised towards premium segments, including the acquisitions of K18 and Yasso and the disposals of Elida Beauty, Dollar Shave Club, and Suave in North America.
Hein Schumacher, Unilever’s CEO, said: “Today's results show an improving financial performance, with the return to volume growth and margins rebuilding. However, our competitiveness remains disappointing, and overall performance needs to improve. We are working to address this by improving our execution to unlock Unilever's full potential.”
Unilever share price.
The Unilever share price rose 3.84% to trade at 4053.8p from Wednesday’s closing price of 3904.0p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.