Unilever H1 Profit Edges Up, Turnover Down; Declares Dividend

(RTTNews) - Consumer goods giant Unilever Plc (UN, ULVR.L, UL) reported Thursday a slight increase in first-half profit, while turnover declined on negative currency impact. At constant exchange rates, sales increased 5.4 percent, while underlying sales growth was 4.7 percent with volume up 2.2 percent.

The company noted that consumer demand remained weak and volumes have slowed further in its operating markets, with market volume growth low in emerging markets and negative in Europe and in North America.

For the first half, pretax profit edged up 0.8 percent to 3.64 billion euros from 3.61 billion euros, a year ago. Profit to shareholders' equity increased 0.9 percent to 2.51 billion euros. Earnings per share were 0.88 euros, 1 percent higher than last year.

Core attributable profit was 2.63 billion euros, compared to 2.60 billion euros a year earlier. Core earnings per share was 0.92 euros, compared to 0.91 euros a year ago.

First-half turnover decreased 2.6 percent to 26.28 billion euros from 26.99 billion euros in the prior year.

In the second quarter, total turnover was 13.7 billion euros, an underlying sales growth 4.7 percent with volume up 1.8 percent and price up 2.8 percent.

All segments posted higher underlying turnover in the second quarter as well as in the first half.

In the first half, emerging markets' turnover grew 8 percent on an underlying basis, driven by good volume growth in Asia and price growth in Latin America. Developed markets grew 0.2 percent with volume growth more than offsetting price deflation in Europe.

Core operating margin of 15 percent was up 50 basis points, driven by an 80 basis points improvement in gross margin to 42.7 percent.

Paul Polman, CEO, stated, "Our first half results further demonstrate the progress we have made in the transformation of Unilever to deliver consistent, competitive, profitable and responsible growth. Despite a challenging environment with slower global economic growth and intensifying geopolitical instability, we have again grown profitably in our markets, competitively and driven by strong innovations."

Further, the Boards have declared a quarterly interim dividend for the second quarter of 0.3201 euros per Unilever N.V. ordinary share and 0.2689 pounds per Unilever ordinary share.

Unilever shares are currently trading at 3,550 pence in London, down 0.70 percent, and at 41.76 euros in Amsterdam, down 0.32 percent.