Unilever Withdraws Forecasts After Coronavirus Hits Sales
Underlying sales were flat in the first quarter, while analysts expected a 2.1% growth.
(Bloomberg) -- Unilever is accelerating the launch of new cleaning goods after coronavirus-related stay-at-home orders clobbered sales of the consumer giant’s food products.
The Anglo-Dutch company withdrew financial guidance for the year after reporting flat underlying sales for the first quarter, below analysts’ expectation for 2.1% growth. The shares fell as much as 4.1% early Thursday in Amsterdam.
Strong demand for household cleaners under the Domestos and Cif brands has been offset by weakness in ice cream, which has been hit by lockdowns, Unilever said.
The company is speeding up the launch of a botanicals-based hygiene product line in China, Chief Executive Officer Alan Jope said in an interview with Bloomberg Television.
It’s also expanding production of hand sanitizer, which was a tiny part of Unilever’s business before the crisis, Jope said. Now about 30 of its production facilities around the world are producing it. Most of the gel is donated to public health efforts, but some is sold, the CEO said.
The company is taking steps to maintain cash, but unlike many, it’s maintaining a dividend, at least for the first quarter.
A strategic review of Unilever’s tea business is continuing, Jope said. Black tea is in structural decline and the crisis hasn’t changed Unilever’s view of its prospects, he said.
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