Unilever Posts Small Profit Rise; Cautions On Outlook
02 Februar 2012 - 8:52AM
Dow Jones News
Unilever PLC (UN, UL) Thursday posted a small rise in full-year
net profit on higher sales, higher prices in selected markets and
volume gains in emerging economies, but cautioned the outlook
remains difficult this year.
The company, one of the world's biggest producers of consumer
goods, said purchases of ice cream, tea, cleaning products,
deodorants and shampoo in the booming economies of Asia, Africa,
Latin America, and the Middle East are more than offsetting weaker
sales in debt-laden Western Europe and the U.S.
"We expect the external macro-economic environment to remain
difficult in 2012 and input cost headwinds will persist, although
to a lesser extent than in 2011.," Chief Executive Paul Polman said
in a statement.
The Anglo-Dutch firm is the second-largest maker of branded
household products by revenue after U.S.-based Procter & Gamble
Co. (PG) and is behind food products such as Ben & Jerry's ice
cream, Knorr soup and Bertolli olive oil spreads and household
products such as Dove soap, Lynx aftershave and Cif cleaner.
Net profit for the fiscal year rose to EUR4.25 billion from
EUR4.24 billion in the same period a year ago.
Fourth-quarter sales excluding acquisitions, disposals and
currency movements grew 6.6%, missing a company-produced consensus
of market forecasts that predicted 6.8% growth. This compares with
a 5.1% rise in the same period a year ago and a 7.8% increase in
the previous three months.
Volumes, stripping out acquisitions, disposals and currency
movements in the quarter rose only 0.1%, down from 5.1% growth last
year and a 1.9% increase in the third quarter. Volume growth was
adjusted by about 1% for the impact of sales in North America, the
group said.
Unilever's operating margin in the full year, excluding
restructuring, disposals and other exceptional items, was down to
14.9% from 15% last year. The company warned in November of flat to
lower margin in the fiscal year.
To combat rising costs, the company is streamlining packaging,
paring its logistics, sourcing and purchasing costs, and
selectively increasing prices to stem margin losses. The price of
its products rose 6.5% in the fourth quarter, compared with a 5.8%
increase in the third quarter.
Unilever, which also competes with Switzerland's Nestle SA
(NESN.VX), faces a challenging consumer outlook in its mature
economies, where shoppers' disposable income is under pressure from
rising unemployment, below-inflation pay rises and austerity
measures such as tax hikes and public spending cuts.
P&G last week posted a 4% rise in net sales to $22.1 billion
for its fiscal second quarter, and said its operating profit growth
will accelerate as commodity costs ease.
Unilever proposed a quarterly dividend of EUR0.225 a share,
payable in March, and reiterated its guidance of profitable volume
growth, steady and sustainable underlying operating margin
improvement and strong cash flow.
Unilever shares closed Wednesday at 2085 pence, valuing the
company at GBP58.7 billion. The shares have fallen 3.6% in the year
to date.
-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410;
simon.zekaria@dowjones.com
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