Unilever PLC (LSE:ULVR)'s share price rose 3.4%, adding £4 billion to the value of the Dove soap maker, after it posted third-quarter results that slightly exceeded expectations.
The company reported a 4.5% rise in underlying sales, surpassing analysts' forecasts of a 4.2% increase, driven by product innovations and a slower pace of price hikes, leading to its largest sales volume growth in over three years.
Despite the positive performance, Unilever maintained its full-year guidance for 3-5% underlying sales growth and a minimum 18% operating margin, while cautioning that second-half margin improvements would be smaller than the first half.
The company also highlighted progress in its productivity programme and the planned separation of its Magnum ice cream business, expected to be sold by 2025 for an estimated £15 billion.
According to Deutsche Bank, the standout performer for Unilever in the third quarter was its ice cream division, which saw a 9.8% increase in sales and a 6.7% rise in volume and mix, driven by better execution and easier comparisons from the previous year.
Excluding the Magnum choc ice business, Unilever's underlying sales growth was 3.6%, with a strong 3.1% increase in volume and mix, and a modest 0.5% rise in pricing.
Deutsche says 'buy' up to 5,000p a share. Counterbalancing this, American bank Jefferies restated its 'underperform' recommendation and 4,100p price target.
In early afternoon trading, the stock was up 158.44p at 4,811.44p.