![Unilever launches $1.6 billion buyback, CEO calls for improvements](https://i-invdn-com.investing.com/trkd-images/LYNXMPEK1707C_L.jpg)
© Reuters. FILE PHOTO: Unilever emblem is displayed on Dove cleaning soap bins on this illustration taken on January 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
By Richa Naidu
LONDON (Reuters) -Unilever launched a 1.5 billion euro ($1.6 billion) share buyback on Thursday after volumes elevated for the primary time in 10 quarters, though the corporate’s CEO mentioned its total efficiency nonetheless wanted to enhance.
While the maker of Dove cleaning soap and Hellmann’s condiments mentioned its full-year underlying working revenue rose 2.6% to 9.9 billion euros and its underlying working margin was up 60 foundation factors to 16.7%, it missed analyst expectations for working revenue of 10.4 billion euros and a margin of 16.9%.
“Our competitiveness remains disappointing and overall performance needs to improve,” CEO Hein Schumacher mentioned in an announcement. “We are at the early stages of this work and there is much to do but we are moving with speed and urgency to transform Unilever (LON:) into a consistently higher performing business.”
Unilever mentioned it expects a “modest improvement” in underlying working margin for the complete 12 months and underlying gross sales progress will likely be inside its multi-year vary of three% to five%.
The shopper items big reported a roughly 5% rise in fourth-quarter underlying gross sales, assembly analysts’ common forecast, a company-provided consensus confirmed.
Underlying fourth quarter worth progress was 2.8% and underlying volumes had been up 1.8%, rising for the primary time for the reason that second quarter of 2021. The worth rise was lower than analysts anticipated, whereas gross sales volumes rose greater than forecast.
Unilever mentioned its buyback programme will begin within the second quarter.
($1 = 0.9271 euros)