Unilever Reports 8.1% Underlying Sales Growth In H1; Warns Of Continued Inflation Pressure In H2

Unilever Reports 8.1% Underlying Sales Growth In H1; Warns Of Continued Inflation Pressure In H2
  • Unilever PLC UL reported the first-half FY22 turnover growth of 14.9% year-on-year to €29.6 billion.
  • The company recorded an 8.1% Y/Y underlying sales growth, with (1.6)% from volume and 9.8% from price.
  • Segments: Underlying sales for Beauty & Personal Care grew 7.5%, Home Care increased 10.7%, and Foods & Refreshment rose 7.3%.
  • The underlying operating profit for the half-year period increased 4.1% Y/Y to €5 billion, and the underlying operating margin declined 180 basis points to 17%.
  • Net cash flow from operating activities was €4.3 billion in H1, with a free cash flow of €2.2 billion.
  • Cash and equivalents totaled €5.4 billion, and net debt amounted to €27.1 billion as of June 30, 2022.
  • Underlying EPS for the first half was €1.34 versus €1.33 last year.
  • Unilever expects high input cost inflation, widespread across the markets, to remain elevated in the second half. While COVID-19 restrictions have been eased in most markets, the lockdown in China affected consumers, particularly in Q2.
  • Outlook: The company expects underlying sales growth in 2022 to be above the 4.5% - 6.5% range, driven by price with further pressure on volume.
  • It expects net material inflation for FY22 to remain high at around €4.6 billion.
  • Unilever's full-year underlying operating margin expectation remains at 16%, within its guided range of 16% to 17%.
  • Price Action: UL shares are trading higher by 2.25% at $48.20 in premarket on the last check Tuesday.
  • Photo Via Wikimedia Commons

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