Unilever unveils €3bn buyback after good start to 2021

Unilever announced a €3bn (£2.2bn) share buyback as the consumer goods company predicted first-half sales growth near the top of its target range.

Underlying sales rose 5.7% in the first quarter and turnover fell 0.9% to €12.3bn, the FTSE 100 group said in a trading update. Turnover declined because of currency movements, Unilever said.

Sales growth was mainly down to higher volumes, which accounted for 4.7%, with prices accounting for a 1% increase. Underlying sales in the first half will rise at a rate near the top of the 3-5% range that is Unilever's long-term target.

The maker of Dove soap and Marmite spread announced a dividend of €0.4268 per share for the three months to the end of March and said it would buy back up €3bn of its own shares in 2021.

Alan Jope, Unilever's chief executive, said: "Unilever has made a good start to the year. Our focus on operational excellence, innovation, and purposeful brands is continuing to strengthen competitiveness and has delivered underlying sales growth of 5.7% for the quarter. Following another year of strong cash flow delivery, Unilever's Board has approved a share buyback programme of up to €3bn."