Unilever has seen its first quarter turnover drop more than 5 % because of negative exchange rate fluctuations. Excluding that impact, the food and care product manufacturer’s turnover would have grown 3.4 %.
12.6 billion euro turnover
In the first three months of 2018, Unilever generated a 12.6 billion euro turnover, it announced today in a trading statement. That is below analysts’ expectations, but excluding exchange rate fluctuations, the group did manage to meet the board’s forecast of 3.4 % (compared to the 3 – 5 % turnover growth forecast).
The weak dollar was the main culprit for the manufacturer’s weaker results: all in all, the negative exchange rates impacted turnover by 10 %. Turnover in the North and South American regions dropped the most for the Knorr and Dove producer.
Aside from its results, Unilever had good news for shareholders: the company will buy back up to 6 billion euros’ worth of shares and its quarterly dividend (paid in June) will get an 8 % spike. These costs are partially covered with its margarine division sale, sold to private equity firm KKR late last year for 6.8 billion euro.