Unilever declares 36.64 pence per share of dividend for fiscal Q2

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jul 22, 2021
  • Unilever says its pre-tax profit declined slightly in the fiscal first half.
  • The multisector retailer received a warnings from Israel's government.
  • Shares of the company are down more than 5% on Thursday morning.

Unilever plc (LON: ULVR)  said on Thursday its pretax profit declined slightly in H1 of 2021 but reiterated its revenue goal.

H1 financial performance

Unilever reported £3.75 billion of pre-tax profit for the fiscal first half on Thursday that translates to a slight decline from last year’s £3.89 billion. It valued the turnover in H1 at £22.14 versus the year-ago figure of £22.07 billion.

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In the fiscal second quarter, Unilever’s turnover stood at £11.55 billion – an increase from £11.41 billion in the same period last year. In fiscal 2020, Unilever had posted a decline in net profit to £4.93 billion due to the COVID-19 restrictions.

The Anglo-Dutch multisector retailer noted a 5.4% annualised growth in H1 underlying sales, including a 4.5% growth in home-care underlying sales, an 8.1% increase in foods and refreshment, and a 3.3% growth in underlying sales from beauty and personal care.

Second-quarter underlying sales jumped 5.0% overall, including a 4.2% increase in beauty and personal care underlying sales.

The board declared 36.64 pence per share of dividend for the second quarter on Thursday. Commenting on the financial update, CEO Alan Jope said:

“We are confident that we will deliver underlying sales growth in 2021 well within our multi-year framework of 3% to 5%, despite more challenging comparators in the second half.”

Unilever gets a warning from Israel

The news comes a day after Israel’s Prime Minister Naftali Bennett warned Unilever’s subsidiary Ben & Jerry to stop selling ice cream in the occupied Palestinian territories. He said:

“From the perspective of the State of Israel, this is an action that has severe consequences, including legal, and it will take strong action against any boycott directed against its citizens.”

Shares of the company are down more than 5% on Thursday morning. The £106 billion multinational has a price to earnings ratio of 22.16.

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