Unilever ups sales and divi as it puts Kraft Heinz bid behind it

Marmite-to-Magnum ice-cream maker Unilever on Thursday revealed better-than-expected sales and boosted the dividend in its first results update since rebuffing a takeover approach from Kraft Heinz.

The consumer goods giant, which is also behind the PG Tips and Pot Noodle brands, said underlying sales rose 2.9% in the first quarter, against analysts’ estimates of 2%.

It was helped by price increases and growth in Latin America and Asia. Its ice-cream division benefited from new Ben & Jerry’s ranges.

That helped to offset a tough European market where “consumer demand remained weak and the retail environment challenging”. Unilever was last year involved in a row with Tesco over Marmite prices.

But the company was upbeat earlier, raising the quarterly dividend by 12%.

Chief executive Paul Polman said the firm is on track for full-year underlying sales growth. Unilever was one of the biggest risers on the FTSE 100, up 44.5p to 3982p.

The report was the first since the company batted away a £115 billion takeover bid from Kraft Heinz in February.

Following that, it launched a review of options to “accelerate delivery of value” for shareholders, and earlier this month unveiled plans to sell its margarine spreads business.

ETX Capital’s Neil Wilson said: “Unilever somehow failed to mention anything about the impact of the bid from Kraft Heinz, despite the fact it’s had a clear impact on strategy at the Anglo-Dutch group.

“Perhaps that’s because there is no need to mention it when sales growth is ticking up so well.”