Unilever has surpassed the 50 billion euro turnover mark, even without its margarine division. The British-Dutch food and personal care giant experienced growth, particularly with its brands Dove and Knorr.
European price competition
Unilever’s fourth quarter turnover reached 12 billion euro, excluding its margarine division which will be sold to KKR soon. That 4 % growth will bring annual turnover to 50.7 billion euro, up 2 % compared to 2016. Excluding averse exchange rate fluctuations, there would have been a 3.5 % turnover growth.
Unilever does depend more on emerging markets in Asia and Latin America to generate growth: North American turnover has stabilized and there was even a slight drop in Europe. In that particular market, supermarkets increasingly compete against each other based on price, something that may continue for quite some time.
6.5 billion euro annual profit
Unilever’s net profit reached 6.5 billion euro last year, almost one billion euro higher than in 2016. Its cost-cutting operation, active for several years already and taking effect faster than anticipated, will have something to do with those numbers: underlying margin grew to 17.5 % and should reach 20 % by 2020.
For its current fiscal year, the group targets a 3 to 5 % like-for-like turnover growth. Dutch Paul Polman will still lead the company for the next eighteen months.
