Unilever Q4 and Full-Year 2023 Results

Unilever is set to announce its financial results for the fourth quarter and full-year 2023 on Thursday. Here's what you need to know:

Turnover Forecast

• The London-listed consumer-goods major is expected to report a fourth-quarter turnover of 14.28 billion euros ($15.36 billion). This is slightly lower compared to EUR14.61 billion for the same period in 2022, as per the consensus provided by the company and based on inputs from 20 analysts.
• For the full year, turnover is projected to decline to EUR60.04 billion from EUR60.07 billion.

Operating Profit Forecast

• The company's preferred metric, underlying operating profit, is expected to increase to EUR9.88 billion for the full year. This is a significant rise from EUR8.68 billion in the previous year.
• The underlying operating margin for the year is anticipated to reach 16.5%.

Sales Growth

• Unilever is expected to report a 5.0% underlying sales growth in the quarter. This growth is driven by a 3.8% increase in pricing and a 1.1% increase in volume, according to the company's consensus.
• For the entire year, sales are projected to grow by 7.1%, primarily due to an increase in pricing. However, volumes are expected to remain flat.

These results give us valuable insights into the performance of Unilever in the fourth quarter and throughout the full year of 2023.

Net Profit Forecast

According to a consensus taken from FactSet and based on 11 analysts' estimates, net profit for the upcoming year is expected to decline to EUR6.23 billion, a decrease from EUR7.64 billion in 2022.

What to Keep an Eye On

Cash Returns

Unilever recently completed a EUR3 billion share buyback and paid out three quarterly dividends at the same level as 2022, amounting to EUR0.4268 per share, as noted by AJ Bell.

Growth Plans

Investors will be eager to hear about Unilever's program outlined by Chief Executive Officer Hein Schumacher. The program aims to achieve accelerated growth, improved margins, and a performance-focused approach. AJ Bell also mentioned that the plan seeks to increase underlying volume growth and margins while boosting shareholder returns.

M&A

Comments regarding the planned sale of Dollar Shave Club and any hints on future merger-and-acquisition activity are also anticipated by investors. The CEO has expressed intentions to make selective purchases and dispose of certain brands, as highlighted by AJ Bell.