Shares in Unilever (LON:ULVR) have fallen into the red in London this morning even as the Anglo-Dutch consumer goods giant reported a rise in sales in the third quarter of the year. The update comes after the company recently scrapped its plan to abandon its dual-headed structure and move to the Netherlands, with the proposal attracting significant opposition from investors.
As of 08:47 BST, Unilever’s share price had given up 1.85 percent to 3,949.50p. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally higher and currently standing 0.27 percent higher at 7,073.38 points. Unilever’s shares have given up some 13 percent of their value over the past year, as compared with about a 6.5-percent dip in the Footsie.
Unilever posts third-quarter results
Unilever announced in a statement this morning that its underlying sales had growth 3.8 percent in the third quarter of the year, excluding price growth in Argentina due to hyperinflationary status. Including Argentina, sales growth would have been 4.5 percent. The group’s turnover, however, was impacted by an adverse translational currency impact of 5.2 percent. The net impact of acquisitions and disposals, which included the disposal of the group’s spreads business, reduced turnover by 3.3 percent.
“Growth accelerated in the third quarter across all Divisions,” Unilever’s chief executive Paul Polman commented in the statement, adding that the consumer goods giant continued to expect underlying sales growth of between three and five percent, and that it remained on track for its 2020 goals.
Company to consider investor feedback
Regarding this month’s scrapped plan to move its single headquarters to the Netherlands, Unilever’s chief financial officer Graeme Pitkethly told Reuters that the group’s board would take time to consider all the feedback it got from shareholders before making any further moves.