Unilever PLC (LSE:ULVR) is forecast to report 4.7% year-on-year underlying sales growth in the second quarter, according to UBS analysts.
Total sales volumes are tipped to expand by 3%, with an observable increase in gross margins also predicted.
They represent modest projections for an FMCG giant attempting to kickstart a turnaround plan labelled by one bank as “the most compelling turnaround story in European consumer staples".
As part of this attempt to get sales growth ticking up again, Unilever recently decided to scoop out its ice cream division, which is home to Ben & Jerry’s. Magnum, Walls and others.
Announcing the spinout in March, Unilever said it “is confident that the future growth potential of ice cream will be better delivered under a different ownership structure”.
However, Unilever must convince shareholders that this was the right idea by showing progress on its income statement.
That is unlikely to happen as immediately as the second-quarter and interim trading update on 25 July, leaving the emphasis on forward sales guidance for the rest of the year.
Analysts remain fairly conservative on this front.
According to Berenberg’s latest guidance, Unilever should see underlying sales growth of 3-5% for the full year, with modest margin expansion.