UPDATE: Unilever Warns On Global Economy, Profit Flat
02 Februar 2012 - 10:15AM
Dow Jones News
Unilever PLC (UL) Thursday warned of a difficult year ahead in a
struggling global economy as the consumer products giant posted
only a slight rise in full-year net profit despite increased sales,
higher prices in selected markets and volume gains in booming
emerging economies.
Purchases of ice cream, tea, cleaning products, deodorants and
shampoo in the growth 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. though signs of moderating growth are
appearing, the company said.
Unilever 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.
"The global economy is still in poor shape. Consumer demand in
Europe and North America was sluggish in 2011. Even in emerging
[economies], there are signs of softening in some of our important
markets," Chief Financial Officer Jean-Marc Huet told reporters.
"Inflationary pressures remind us of 2008. It really has been a
high level," he added.
The Anglo-Dutch company 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. Sales rose 5% to
EUR46.47 billion from EUR44.26 billion.
Fourth-quarter sales excluding acquisitions, disposals and
currency movements grew 6.6%, missing a company consensus of
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 1%
adjusted by the impact of sales in North America, the company
said.
At 0813 GMT, Unilever's shares were down 54 pence, or 2.6%, at
2031 pence in a modestly lower London market.
"The first look is disappointing," Espirito Santo Investment
Bank analyst Nuno Brito Cunha said.
Unilever's operating margin in the full year, excluding
restructuring, disposals and other exceptional items, fell to 14.9%
from 15% last year. The company warned in November of flat to lower
margin in the fiscal year.
To combat commodity costs of oil, palm oil, petrochemicals and
plastics, the company, which also competes with Switzerland's
Nestle SA (NESN.VX), 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.
"Commodity costs are not at the same level as last year, [but] I
don't think we are going to see a reverse," Huet said.
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 input 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.
-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410;
simon.zekaria@dowjones.com
Unilever NV (NYSE:UN)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Unilever NV (NYSE:UN)
Historical Stock Chart
Von Jul 2023 bis Jul 2024