Unilever: share buybacks and results boost stock
(CercleFinance.com) - Unilever shares are up on Thursday after it announced better-than-expected Q1 figures and launched a vast share buyback program.
The European consumer goods giant is leading the STOXX Europe 50 index, up over 3%, winning back some of the lost ground since the beginning of the year, with its fall now limited to around 4%.
The Anglo-Dutch group announced this morning that it would start a share buyback program of up to three billion euros from next month, aiming to complete it by the end of the year.
It looks like capital allocation priorities are back on track from a shareholder viewpoint, Canadian broker RBC said.
The Anglo-Dutch consumer products giant also beat market expectations by reporting organic sales growth of 5.7% in the first quarter.
The owner of Magnum ice cream and Hellmann's mayonnaise said its growth was largely fuelled by the strength of its food and drink business, which posted organic growth of 9.8% in the first three months of the year.
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