Unilever Soars on Earnings Beat, Ben & Jerry’s Spinoff Plan

Unilever (UL) American depositary receipts (ADRs) jumped 6% Thursday as the consumer-goods giant posted an earnings beat, showing it is weathering the inflation pain hitting consumers better than rival Nestle.

Investors also were encouraged by its lofty operating margin target for the year and its announcement that the spinoff of Ben & Jerry’s and the rest of its ice cream division was on track to be completed by the end of 2025.

Turnover rose 2.3% year-over-year to 31.1 billion euros ($33.7 billion) for the first half of 2024, and EPS was EUR1.47, beating analysts’ consensus forecasts of EUR30.97 billion and EUR1.39, according to Visible Alpha.

Unilever, whose brands also include Dove soap and Hellmann’s mayonnaise, said its underlying operating margin for the full year is expected to be at least 18%, after saying in April it expected just “a modest improvement.”

Unilever Rival Nestle Cuts Prices

Unilever’s results were in contrast to those by rival consumer products firm Nestle (NSRGY), which cut its full-year organic sales guidance as its consumers seek lower prices. The Swiss maker of Toll House cookie dough said organic sales would grow “at least 3%,” down from “around 4%” previously.

Unilever ADRs rose 6.2% to $60.05 as of 10:15 a.m. Thursday and are up more than 23% this year.