Unilever Q1 Turnover Down; Expects Volume, Margin Growth

(RTTNews) - Anglo-Dutch consumer goods giant Unilever Plc (UL, ULVR.L, UN) Thursday reported a 6.3 percent decline in the first-quarter turnover, reflecting a negative currency impact of 8.9 percent. Underlying sales growth was 3.6 percent, with emerging markets increasing 6.6 percent.

Looking ahead, the company said it remains focused on another year of profitable volume growth ahead of markets, steady and sustainable core operating margin improvement and strong cash flow.

According to Unilever, the first-quarter results were benefited by strong growth from Home Care and Personal Care, and an excellent start to the ice cream season in Europe, while food sales were hurt by the timing of Easter and weak markets.

For the quarter, the company's turnover totaled 11.4 billion euros, compared with last year's 12.16 billion euros. Underlying volume increased 1.9 percent and pricing was up 1.6 percent from last year.

On an underlying basis, personal care segment's sales of 4.2 billion euros grew 4.5 percent driven by a strong innovation program. Homecare's sales grew 7.4 percent, with a significant impact from new product launches and refreshment sales increased 5.9 percent.

Sales in food segment, however, declined 1.7 percent to 3 billion euros as a slight increase in price was more than offset by lower volumes.

In the quarter, developed markets remained weak although there were some further signs of improvement in southern Europe. European underlying sales edged up 0.1 percent, and sales in the Americas grew 3.7 percent with strong growth in Latin America , while North America declined despite competitive growth from the Personal Care brands.

In Asia/AMET/RUB region, underlying sales grew 5.8 percent with strong performances in China, Turkey and Indonesia and a marked improvement in Japan. The company noted that its market growth continued to slow in the emerging markets, particularly in South Asia and South East Asia.

Chief Executive Officer Paul Polman said, "We delivered good growth in the first quarter despite slowing markets and a tough competitive environment, further evidence that Unilever is now delivering consistently ahead of our markets. Emerging markets are currently passing through a period of slower demand and economic volatility but our strategy remains unchanged."

In addition, the board recommended a quarterly interim dividend of 0.2850 euros per Unilever N.V. ordinary share, and 0.2338 pound per Unilever Plc ordinary share.

In London, Unilever shares are currently trading at 2,604 pence, down 30 pence or 1.14 percent.

In Amsterdam, the shares lost 0.70 percent, and traded at 30.47 euros.