Unilever Reports Sales Growth of 6.1%

07/02/08 Unilever has reported underlying sales growth of 6.1%, including 3.0% from pricing in the fourth quarter of 2007. Operating margin of 11.1%, with an underlying improvement of 0.2 percentage points, after an increase in advertising and promotions of 0.6 percentage points of sales.

"The fourth quarter was a strong finish to a good year. 2007 marks the third successive year of accelerating sales growth and came with an underlying improvement in margin. This is clear evidence that our strategy of focusing resources on faster growing and profitable segments is succeeding”, said Patrick Cescau, Group Chief Executive.

“The re-shaping of the business and the acceleration of our change programme are bringing real benefits.  They make Unilever a more flexible and resilient company, better placed to meet the challenges of operating in a tougher economic and cost environment. We therefore remain confident of achieving our 2010 goals - for an operating margin in excess of 15% while delivering consistent, competitive growth along the way.”

Cescau said that in 2008 the company expects underlying sales growth to be towards the upper end of its 3-5% target range and to see a further underlying improvement in operating margin.

For the full year Unilever reported underlying sales growth of 5.5%. Operating margin of 13.1%, with an underlying improvement of 0.2 percentage points.