Unilever First-half Profit Climbs On New Products

(RTTNews) - Anglo-Dutch consumer goods giant Unilever Plc. (UL, ULVR.L, UN) Thursday reported a higher profit for its first half, citing product innovation as key driver of growth in the period. Emerging markets continued to grow, with 10.3 percent growth.

Unilever said it aims achieving another year of profitable volume growth ahead of its markets, steady and sustainable core operating margin improvement and strong cash flow.

The company, however, said growth is slowing in emerging markets, as macro-economic headwinds influence consumer behaviour, and developed markets remain sluggish with little sign of any recovery in North America or Europe.

Paul Polman, chief executive officer of the company said, "Innovation remains the key driver of growth with examples such as compressed deodorants, Vaseline Spray & Go and Magnum 5 kisses."

For the first half, the company posted profit before tax of 3.66 billion euros, higher than 3.2 billion euros in the prior year. Net profit attributable to shareholders' equity reached 2.43 billion euros, up from 2.13 billion euros in the previous year.

On a per share basis, earnings increased to 0.83 euros from 0.73 euros per share in the same period last year. The company said it has restated its prior-year results.

Core earnings, excluding certain items, were 0.76 euros per share, while the company posted 0.74 euros a year ago.

Half-yearly turnover edged up 0.4 percent at current rates to 25.50 billion euros, from last year's 25.4 billion euros. At constant rates, turnover grew 3.8 percent from a year earlier. Underlying sales growth was 5.0 percent, with 2.6 percent rise in underlying volume and price increase of 2.3 percent.

Unilever noted that all categories grew globally with strong growth from Home Care and Personal Care. Refreshment was impacted by adverse weather conditions on ice cream business. In Foods, growth of Knorr and Hellmann's was offset by a decline in spreads.

In Personal Care, underlying sales grew 8 percent, while Foods showed a marginal growth of 0.2 percent. Underlying sales in Refreshment and Home Care improved 2.1 and 9.8 percent, respectively.

Core operating margin improved 40 basis points at 14 percent that reflected higher advertising and promotions investment behind its brands.

Recently, Unilever increased its stake in Indian subsidiary Hindustan Unilever or HUL to 67 percent. It was on April 30 that Unilever announced a voluntary open offer to increase its stake in HUL from 52.48 percent to up to 75 percent at a price of 600 Indian rupee per share.

In London, Unilever shares are currently trading at 2,669 pence, down 49 pence or 1.8 percent.

In Amsterdam, the shares are down 1.68 percent, and are currently trading at 30.44 euros.