Unilever Delivers Consistent First-Half 2012 Results, Despite EU Slowdown

First-half underlying sales growth 7.0% comprising volume growth of 2.8% and price growth of 4.1% , while second quarter underlying sales growth of 5.8%. Emerging markets underlying sales growth uwas p 11.4% in the first half; up 11.0% in the second quarter.

30 Jul 2012 --- Unilever has released its results for the half year and second quarter 2012. Turnover was up 11.5% at €25.4 billion with a positive impact from foreign exchange of 1.9% and acquisitions net of disposals of 2.2%. First-half underlying sales growth 7.0% comprising volume growth of 2.8% and price growth of 4.1% , while second quarter underlying sales growth of 5.8%. Emerging markets underlying sales growth was up 11.4% in the first half; up 11.0% in the second quarter.

The first-half results reflect a strong performance in markets that remain challenging. Consumer confidence remains fragile and the competitive environment intense. “The value growth of our markets is driven largely by pricing and reflects the combination of strong growth in emerging markets and sluggish growth in the developed markets where volume growth continues to be negative. In this context, all of our Categories grew, driven by strong innovations and the roll-out of our brands into new markets,” a statement read.

Commenting on the results, CEO Paul Polman said: “Despite deteriorating global economic conditions and a competitive environment which remains intense, we again delivered volume growth ahead of our markets and gained value share across the majority of our business. Our performance reflects continued investment in innovation, brand-building and people, whilst keeping discipline on both costs and execution.”

Savoury growth was underpinned by strong performances in Knorr cooking products and soups. Knorr jelly bouillon continued to grow as we supported the latest innovation, gravy, and through successful market development programmes such as the “Steak Challenge” initiative in Latin America. Knorr baking bags also delivered good growth and are now available in 40 countries. The Food Solutions business, which serves professional chefs, is helping drive savoury growth by working with customers to create healthy menus and through the “wise up on waste” initiatives, working with chefs to reduce energy consumption and food wastage.

In spreads, the company have increased prices to keep pace with significant commodity cost inflation and this impacted volumes in the second quarter. “We delivered positive growth in the first half and we continued to innovate with the successful Latta aerated product now launched in the Netherlands. Liquid margarines continued to do well in Europe. Dressings delivered another quarter of growth, reflecting a strong performance by Hellmann’s in Latin America driven by the ‘Inspire’ campaign to encourage new uses of mayonnaise,” the statement read.

Ice cream performed well in the quarter despite the adverse weather conditions in northern Europe and the high prior year comparator. This reflects good progress in expanding the global footprint. Magnum delivered high single-digit growth, building on the successful launch in the US with the introduction of Magnum Minis, and with the recent launch of Magnum in the Philippines and Thailand. Cornetto also grew strongly on the back of the Angels & Devils innovation and a successful digital campaign in China. Ben & Jerry’s opened its first premium ice cream shop in Japan.

Beverages saw a strong performance in Africa and the Middle East, improved performance in Russia driven by the Lipton relaunch and a good initial response to the launch of Lipton Tea & Honey powdered ready-to-drink tea sachets in the US.