Unilever Sales Meet Estimates as Prices Increase

Unilever reported second-quarter sales growth in line with estimates as hot European weather boosted sales of Ben & Jerry’s and Magnum ice-cream brands and the company raised prices to offset stagnant volume.

Underlying revenue rose 3%, London- and Rotterdam-based Unilever said on Thursday, compared with the 3.1% median estimate of analysts surveyed by Bloomberg. Growth accelerated slightly from the first quarter’s 2.9% uptick. The volume sold in the period was unchanged, with price increases of 3% accounting for the growth in sales.

“We anticipate accelerating growth in the second half of the year driven by the phasing of our innovation plans and a step-up in brand and marketing investment,” CEO Paul Polman said in a statement.

Unilever shares have gained about 25% since a takeover approach by Kraft Heinz was made public in February. The company pledged greater profitability after spurning the bid, increased its dividend payment by 12% and has committed to repurchasing €5bn worth of stock.

Companies in the consumer-goods space are increasingly under pressure to deliver shareholder returns, with activist investors Dan Loeb and Nelson Peltz waging campaigns at Unilever rivals Nestlé and Procter & Gamble.

Unilever said in April it’s seeking to divest its Flora margarine spreads division by the end of the year. The process could fetch an enterprise value of around €6.6bn, a Bloomberg survey of analysts has found.