Weak dollar has negative impact on Unilever

Weak dollar has negative impact on Unilever

Weak dollar has negative impact on Unilever

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.

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