Unilever (LON:ULVR) (NYSE:UL) shares gained over 5% in pre-market Tuesday after the consumer-staples company reported solid Q2 earnings.
Unilever posted underlying sales growth of 7.9% for the second quarter, topping the expected 6.4% increase. Revenue came in at €15.74 billion (€1 = $1.1042), modestly ahead of the consensus of €15.54B.
"As underlying price growth has sequentially moderated from 13.3% in the fourth quarter of 2022, volumes were virtually flat with a step-up in performance in Beauty & Wellbeing and Personal Care offsetting volume declines elsewhere," Unilever said.
The company lifted its full-year forecast to above 5%, up from the prior range of +3-5%.
The board declared a quarterly dividend of 42.68 cents a share.
“We continue to expect a modest improvement in underlying operating margin for the full year, reflecting higher gross margin and increased investment behind our brands,” the company added in the statement.
Citi analysts said the results were better than expected and could potentially act as “a re-rating event.”