Anglo-Dutch consumer goods giant Unilever has beaten forecasts with a 3.6% rise in third-quarter underlying volume sales and said it was on track to restore volume growth for the year, without sacrificing margins or cash flow. Unilever said all regions and categories showed growth.
The group, who markets over 400 leading brands, posted a 2% drop in total sales to E10.2bn for its third quarter, after a 1% rise in the previous quarter. Net profit dropped to E1.05bn from E1.64bn a year ago, when a number of disposals boosted the bottom line. Stripping out acquisitions, disposals and currency movements, second-quarter sales grew 3.4%, after a 4.1% rise in the previous quarter and ahead of analysts' estimates of 2.7% growth. The sales rise was wholly a result of the 3.6% rise in volumes rather than any price rises, after a 2% volume rise in the previous three months.
New Chief Executive Paul Polman identified volume growth as his key focus for the group when he joined earlier this year. The company said all regions and categories showed positive volumes. The volume figure compares favourably with rival P&G, which saw its volumes fall 3% in its latest quarter. "We are on track towards our objective of restoring volume growth while protecting margins and cash flow for the year as a whole," said Polman in a statement.
Operating margin was up 0.7 percentage points in the period. The company said earlier this year its margins would return to growth in the second half as commodity prices fall. Polman said there had been good progress across all regions and the majority of countries and categories, with market shares responding to strong innovations, greater value and increased marketing support.
"Market conditions remain challenging and in this environment we will continue to increase investment behind our brands and build long-term capabilities in research and development," he said.
Namnews - Thursday 5th November 2009
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UK: Q3 Sales At Unilever Beat Forecasts
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