Unilever reports better than expected growth in sales

Consumer goods giant Unilever reported a better than expected rise in second-quarter sales on Thursday, but the increase was helped by higher prices and the company left its full-year target unchanged as global markets worsen and comparisons get tougher in the back half of the year.

The Anglo-Dutch maker of Dove soap, Lipton tea and Magnum ice creams, said underlying sales rose 4.7 per cent in the quarter, excluding the impact of foreign exchange moves, acquisitions and disposals.

On that basis analysts were expecting growth of 4.4 per cent, according to a company survey of forecasts.

The company said overall consumer demand remained weak, and that market sales volume growth was low in emerging markets and negative in Europe and in North America.

It sold 1.8 per cent more products in the second quarter with the remaining rise in sales coming from higher prices.

Chief financial officer Graeme Pitkethly told Reuters the company was sticking to its full-year sales target, which calls for growth of 3 to 5 per cent.

He also said margins for the full year would improve in the historical range of 0.3 to 0.4 percentage points, rather than the 0.5 per centage points delivered in the first half.

On a reported basis, turnover in the first half fell 2.6 per cent to €26.3 billion. Net profit rose 2 per cent to €2.7 billion, with earnings per share up 1 per cent at 88 euro cents.

Reuters