Exchange rates impact Unilever turnover

Exchange rates impact Unilever turnover

Unilever's turnover has dropped quite a bit in 2014's first quarter, because of negative exchange rate fluctuations, even though the underlying turnover growth was higher than expected.

Underlying growth better than expected

Unilever's turnover in the first quarter dropped 6.3 % to 11.4 billion euro, mostly because of negative exchange rate fluctuations, which were at 8.9 %. The underlying growth, which does not consider the purchases and exchange rates, reach 3.6 %, more than the 3.3 % analysts had expected.

 

The emerging markets managed a 6.6 % increase for the underlying turnover, lower than the 8.4 % from 2013's fourth quarter. "Emerging markets are currently passing through a period of slower demand and economic volatility but our strategy remains unchanged. We continue to invest in our brands so that they are well-placed to benefit from the significant longer term growth opportunity that will come from growing populations and higher disposable income", CEO Paul Polman said.

 

Unilever recently sold the BiFi brand and will now consider selling several other brands, like the pasta sauce department in North America and maybe SlimFast. The company bought SlimFast for 1.75 billion euro in 2000, but the diet product sales has dropped considerably since then in the United States.

Questions or comments? Please feel free to contact the editors


Crocs loses patent battle

14/08/2017

Shoe manufacturer Crocs lost a patent court case revolving around the shoe’s design. According to the American Patent & Trademark Office (USPTO), another company had a similar design for much longer.

Coolcat's losses compound

14/08/2017

Dutch fashion chain Coolcat, part of entrepreneur Roland Kahn’s group, has not managed to lower its losses in 2016. On the contrary: its losses grew more than 50 % compared to the year before.

Zalando's growth once again surpasses 20 %

10/08/2017

German Zalando has achieved its 20 % growth target for the second quarter, but just barely. It still forecasts a 20 to 25 % growth for its full fiscal year.

Gucci files lawsuit against Forever 21

09/08/2017

Fashion label Gucci has decided to file a lawsuit against fashion chain Forever 21 in the United States. The case revolves around several pieces of clothing, all with a blue-red-blue or green-red-green ribbon. 

Ralph Lauren outperforms expectations

08/08/2017

Fashion label Ralph Lauren’s first quarter was a very good one, as it beat both analysts’ turnover and profit forecasts. It is quite a turnaround for a company that suffered a huge loss only a year ago.

Difficult first quarter for New Look

08/08/2017

British fashion chain New Look had a disappointing quarter, with a 4 % turnover drop. Its adjusted EBITDA fared much worse, with a 35 % drop.

Back to top