- Unilever PLC has announced plans of withdrawing its 2020 forecast due to the economic effects of the coronavirus
- The company revealed that its inability to assess the economic impact of the pandemic has compelled it to pay its quarterly interim dividend
- Unilever's first-quarter turnover increased by 0.2% to $13.42 billion
Unilever PLC has revealed it can no longer rely on its 2020 forecast.
The company indicated on Thursday that it cannot readily assess the impact of the coronavirus and for that reason, it plans to pay its quarterly interim dividend.
It added that underlying sales for the first three months of the year were flat.
This, it believes, is because of a sharp decline in shopping and restaurant trips in China during much of the quarter offset gains from stay-at-home consumers stockpiling its soups and laundry detergent in Europe and North America.
According to a report by myjoyonline.com, the company’s first-quarter turnover increased by 0.2% to $13.42 billion.
Analysts projected that this led to a miss of a targeted $12.77 billion.
Unilever is of the view that China suffered a significant decline as the lockdown measures restricted out of home eating and shopping trips across much of the quarter, and a lockdown in India from mid-March severely limited the flow of goods and led to a decline in South Asia.
The Chief Executive Officer (CEO) of the company, Alan Jope, noted that Unilever is reviewing all areas of cash generation and usage as well as re-evaluating all costs in light of the health crisis.
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