Thursday 18 October 2018

Unilever sales and profits helped by emerging markets

Unilever was boosted by a 6.3% increase in emerging markets sales.

Unilever has posted full year results
Unilever has posted full year results

By Ravender Sembhy, Press Association City Editor

Consumer goods giant Unilever has posted better than expected fourth quarter sales growth, helping it deliver rising full year profits off the back of a strong performance in emerging markets.

The Anglo-Dutch group, which is behind Dove, Marmite and Ben & Jerry’s ice cream, posted a 4% increase in underlying sales in the final period of the year, ahead of market forecasts.

Unilever was boosted by a 6.3% increase in emerging markets sales, with brands such as Knorr, Bango and Pot Noodle proving popular.

In Europe, underlying sales nudged up 0.3% as the firm bemoaned “challenging” conditions with subdued volume growth and continued price deflation.

For the full year, Unilever posted a 1.9% increase in turnover to 53.7 billion euros (£46.9 billion), while pre-tax profit rose 9% to 8.15 billion euros (£7.1 billion).

The results come after the group fended off a $143 billion (£115 billion) takeover attempt from Kraft Heinz last year, after which it offloaded its spreads business for 6.8 billion euros (£6 billion) to KKR.

Excluding the spreads business, full year underlying sales growth came in at 3.5%.

Unilever chief executive Paul Polman said: “2017 has once more been a year of major change for Unilever.

“With the implementation of a more agile, consumer-facing organisation, we are seeing quality and speed of innovation further improve. At the same time, we have significantly stepped up the delivery from our savings programmes and continued the evolution of our portfolio.”

The Anglo-Dutch group said of its plans to consolidate its headquarters in the UK or the Netherlands that a review of its dual-headed legal structure has “progressed well” and it will conclude it shortly.

Mr Polman added: “Our priorities for 2018 are to grow volumes ahead of our markets, maintain strong delivery from our savings programmes and to complete the integration of Foods & Refreshment as well as the exit from spreads.

“We expect this will translate into another year of underlying sales growth in the 3% – 5% range, and an improvement in underlying operating margin and cash flow, that keeps us on track for the 2020 targets.”

Press Association

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