By Peter Evans
LONDON--Unilever PLC (UN) Thursday pointed to product
innovations as a driver of strong first-half profit growth, but the
consumer goods giant warned that economic conditions remained
difficult throughout its markets.
The company said new products including compressed deodorants
and a spray version of its Vaseline brand of petroleum jelly helped
it continue to grow despite "tougher economic environment and
reinvigorated competition."
Unilever, the world's No. 2 maker of branded household products
by revenue after Procter & Gamble Co. (PG), said sales at
constant rates of exchange, excluding the effects of acquisitions,
rose 5% in the six months to June 30, just below analyst estimates
of 5.2% growth. Net profit rose 14% to EUR2.43 billion.
More than half of Unilever's revenue comes from faster-growing
developing markets like Indonesia and India, meaning it has so far
been well protected against economic problems in the West. Demand
in these markets for brands such as Dove soap helped Unilever grow
sales in emerging markets by 10.3% in the first half.
"Our emerging markets footprint and strong innovation pipeline
gives us confidence that we will continue to grow competitively,"
said Chief Executive Paul Polman in a statement.
Write to Peter Evans at peter.evans@dowjones.com
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