Anglo-Dutch consumer products giant Unilever reassured investors today that it was on target to meet its growth forecasts for earnings and sales of top brands for 2002.
The maker of Hellmann's mayonnaise and Dove soap had previously set 2002 targets of per centage growth in the high-teens for earnings and sales growth of between 4.5 and 5 per cent for its top 400 brands.
Unilever said sales of its 400 top brands were set to grow at some six per cent in the fourth quarter, after 5.4 per cent in the third quarter, and hence meet its targeted range for the full year.
It added that the earnings per share (EPS) growth is driven by the expansion of operating margin which will be around 15 per cent for the year, up one percentage point compared to 2001.
Unilever shares have outperformed the FTSE 100 by 40 per cent over the last 12 months and outperformed the Dow Jones European food and beverage index by 32 per cent.
Unilever, the world's number three food group after Nestle and Kraft, is in the middle of a five-year "Path to Growth" drive during which it cut jobs and sold assets as it aims to narrow its focus on its 400 leading brands.
It is following a growth plan mapped out in 2000 and revised after its $24.3 billion purchase of US food company Bestfoods which aims to drive underlying annual sales growth to 5-6 per cent and profit margins to more than 16 per cent by 2004.