Unilever posts 13% rise in revenues

Dove ad: Unilever saw growth in Asia
Dove ad: Unilever saw growth in Asia

Anglo-Dutch FMCG giant Unilever has posted a 13.2% year-on-year rise in third-quarter revenues to €11.5bn (£10.1bn) due to a strong performance in emerging markets, while underlying sales fell in Western Europe.

Global underlying sales growth was 3.6%, due to a mix of lower prices and greater volume. Underlying sales strip out acquisitions, disposals and currency fluctuations.

Underlying sales fell 0.3% in Western Europe, with prices down 0.9% and volume up 0.6%.

Pre-tax profit for the world's second-largest consumer products company, which owns brands including Walls ice cream and Dove beauty products, was €1.75bn. This was up 24% year on year.

Unilever indicated that its spend on advertising had remained flat if measured at constant currency during the third quarter, but said that its profit growth could be explained by increased volumes gained through price cutting.

Prices for its products fell a combined 1.2%, with declines in all global regions. Margins were squeezed in the Americas and Asia, but increased in Europe and overall due to the heavy cost-cutting.

The company said it expected the prices of its products to rise towards the end of the year.

Paul Polman, the Unilever chief executive, said: "We have delivered another quarter of solid progress driven by our emerging markets business which again reported high levels of volume growth.

"This reflects the strength of our position in these markets where competitive activity is intense. Overall volume growth remained strong on the back of stronger innovations and the extension of our brands into new markets.

"These results confirm again that our strategy to focus on the consumer and to accelerate growth is working. Our priorities remain to drive profitable volume growth and strong cash flow along with steady and sustainable improvement in underlying operating margin for the year as a whole. We continue to expect underlying price growth to turn positive towards the end of the year."

Unilever agreed to acquire the personal care range of brands from fellow FMCG giant Sara Lee for €1.3bn (£1.14bn) in September 2009 and is currently finalising a deal to aquire hair and beauty products manufacturer Alberto Culver for €2.6bn (£2.3bn).

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers