Unilever Sees Q3 Sales Growth Impacted By Further Slowdown In Emerging Markets

(RTTNews) - Anglo-Dutch consumer goods giant Unilever Plc (UL, ULVR.L, UN) on Monday forecast slower underlying sales growth of 3 percent to 3.5 percent in the third quarter, citing a slowdown that has accelerated in emerging markets. Unilever's underlying sales growth in the second quarter as well as first half of fiscal 2013 was 5.0 percent.

However, the company added that it was on track to meet its goals for fiscal 2013 despite the slower market growth in many emerging countries.

Ahead of investor conferences hosted by Sanford Bernstein and Bank of America Merrill Lynch later this week, Unilever said that the slowdown in emerging markets has accelerated due to significant currency weakening, while developed markets remained flat to down.

Paul Polman, Chief Executive Officer of Unilever said, "We continue to grow ahead of our markets and expect underlying sales growth to improve in quarter four. For 2013, we are still on course to deliver against our priorities of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow."

In late July, Unilever reported a higher profit for the first half, citing product innovation as a key driver of growth in the period. The company's net profit attributable to shareholder's equity was 2.43 billion euros or 0.83 euros per share, up from 2.13 billion euros or 0.73 euros per share in the year-ago period. Half-yearly turnover edged up 0.4 percent at current rates to 25.50 billion euros from 25.4 billion euros in the prior-year period.

Underlying sales growth in the first half was 5.0 percent, with emerging markets up 10.3 percent. However, the company warned at that time that growth was slowing in emerging markets as macro-economic headwinds influenced consumer behaviour, while developed markets remain sluggish with little sign of any recovery in North America or Europe.

UL closed Monday's trading on the NYSE at $38.58, down $1.08 or 2.72 percent on a volume of 1.77 million shares.