Unilever fails to reach turnover forecast

Unilever fails to reach turnover forecast

Unilever has failed to reach its turnover forecast in its second quarter of this fiscal year. The continuing recession and slower growth in the emerging countries have slowed down growth in general.

Slower growth in emerging countries

The underlying turnover growth reached 3.8 % in the past quarter, while analysts had expected 4.3 %. CFO Jean-Marc Huet told Reuters that an overall slower Asian growth is one of the biggest reasons for the lower results, while the difficult Russian situation has not helped either. Growth in the emerging countries reached 6.6 %, while last year easily reached 10 %.

 

Total turnover for the first semester dropped 5.5 % to 24.1 billion euro, because of negative exchange rate fluctuations in South Africa, Argentina and Indonesia among others. Net profit for that period reached 3 billion euro, 12 % more than the same period last year.

 

However, Unilever is not worried and CEO Paul Polman remains convinced that the company will still grow faster than the other competitors in the market. "Our markets have been challenging and we have experienced a further slow-down in the emerging countries whilst developed markets are not yet picking up. [...]We continued to grow ahead of our markets driven by strong innovations.  [...] We remain focused on achieving another year of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow.

Questions or comments? Please feel free to contact the editors


EU needs to lead in fight against protectionism

08/12/2017

(Content provided by EuroCommerce) On the occasion of the European Trade Policy Day today, EuroCommerce urges the European Union to fight against the growing protectionist tendencies everywhere.

Hema returns to profitability

07/12/2017

Hema has become profitable again: after improved net losses in the past quarters, the Dutch chain has managed to become profitable again in the third quarter.

Huge third quarter loss for Hudson’s Bay

07/12/2017

Canadian Hudson’s Bay suffered a huge loss in its third quarter of 2017. Its turnover also slumped compared to the year before.

Hema opens first Belgian flagship stores based on international formula

06/12/2017

Dutch Hema has opened its first Belgian flagship store in Brussels, based on its international store formula. It will open a similar store in Antwerp by the end of the week.

Countdown commercials: the new advertising trend?

05/12/2017

Online luxury retailer Yoox has launched a new type of YouTube ad: the flash offers are only valid for fifteen seconds. If you do not click during the ad, you are too late. The ad campaign will run until mid December.

New owner for Kijkshop

04/12/2017

Store chain Kijkshop has a new owner: Swedish investment firm LPCA sold all of its shares to another Swedish company, SparkistanStClemens.

Back to top