Unilever posted better-than-expected earnings

Unilever posted better-than-expected earnings

Consumption of tea and ice cream had a positive effect on the company's profit

Consumer goods giant, Unilever, reported a 0.3% decrease in sales in Q2, beating analysts’ expectations of a 4.3% decrease. It was the first drop in sales that Unilever had at a quarterly level since 2004.

During these times, hygiene products, surface cleaners, products used for in-home eating grew by up to 25%, according to Alan Jope, the CEO of Unilever. Although the demand for sanitizers increased, the need for deodorant and shampoo fell, as people spent more time indoors.

In the food sector, it was a strong demand for ice cream and tea. The ice cream demand alone jumped 26%, and brands like Magnum and Ben and Jerry's benefited the most. The tea sector posted a 4% increase to 4.5 billion EUR.

Overall, the company had a net profit of $3.80 billion.

Following the good news regarding the tea business, Unilever is considering keeping the industry mainly in India and Indonesia and wants to develop ready-to-drink tea ventures. The process will be implemented by the end of 2021.

The stock price traded higher by 7.2%.

Sources: marketwatch.com, cnbc.com

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