17th Oct 2019 08:01
(Alliance News) - Consumer goods giant Unilever PLC on Thursday said emerging markets have performed well, though Europe, North America, and China remain weaker.
Anglo-Dutch firm Unilever, a FTSE 100 member, owns brands such as Dove soap, Hellman's mayonnaise, Ben & Jerry's ice cream, and hair product Brylcreem.
For the three months to September, Unilever's underlying sales growth was 2.9%, with revenue reaching EUR13.25 billion. Volumes increased by 1.4%, and prices by 1.5%.
Unilever said the Emerging Markets segment was particularly strong, with quarterly underlying sales growth of 5.1% to USD7.8 billion. By contrast, Developed Markets sales fell 0.1% to EUR5.5 billion.
"In Europe and North America growth remained low. South East Asian markets continued to grow well, whilst growth in India softened further and China slowed a little. In Latin America the economic environment remains difficult," said Unilever.
In Europe, underlying sales fell 0.3% as prices fell 0.9%, with Unilever describing the retail environment as "difficult". Ice cream volumes in particular fell due to the hot summer of 2018. The Americas delivered "positive" underlying sales growth, helped by higher prices.
Looking at each product segment, Beauty & Personal Care underlying sales were up 2.8%, while Home Care underlying sales climbed 5.4%. Foods & Refreshment underlying sales were up 1.7%, though volumes declined 0.2%, mainly due to the dip in ice cream sales.
Unilever's nine-month underlying sales growth figure was 3.4%, with revenue at EUR39.33 billion, with volume growth at 1.3% and price growth at 2.4%.
Unilever has declared a quarterly dividend of EUR0.41, the same as in the second quarter.
Chief Executive Alan Jope commented: "We have maintained momentum in the quarter, with a good balance between volume and price. Emerging markets and Home Care have been the key growth drivers. We will step-up competitive top line performance through innovation and portfolio evolution to serve the faster growing geographies and channels.
"We are committed to delivering superior long-term financial performance and balanced, compound growth of the top and bottom line through our sustainable business model. We are taking action to remain relevant to the consumer of the future, such as setting stretching goals on plastic use which we recently announced."
"For the full year, we continue to expect underlying sales growth to be in the lower half of our multi-year 3% to 5% range, an improvement in underlying operating margin that keeps us on track for the 2020 target and another year of strong free cash flow," Jope continued.
Shares in Unilever were 2.1% higher at 4,703.59 pence in London on Thursday.
By George Collard; [email protected]
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