Breaking News

Unilever’s 3Q Sales Flat

November 14, 2005

l Consumer goods group Unilever posted an 11% rise in third quarter earnings as margins improved. Unilever repeated its forecast of double-digit per-share earnings growth for the year. Third quarter net profit before exceptional items and goodwill amortization rose to $1.68 billion. Sales were virtually unchanged at $14.15 billion.
Unilever reduced its 2003 sales growth target for its 400 top brands for the second time this year, to below 3%. Describing market conditions as “street-fighterish,” Howard Green, head of the company’s investor relations department, said a weak performance from frozen foods, Slimfast slimmers’ aids and fragrances bore most of the blame.
The three product areas would cut sales growth by more than two percentage points for the full year, he said. Slimfast fell by almost 30% in the third quarter as alternative diets such as Atkins took their toll.
The company recently implemented the “path to growth” program, which has slashed costs and ditched hundreds of underperforming brands, executives said. It will leave a core of just 400 profitable product lines by next year.
Operating margin increased one percentage point in the quarter to 17%. Also on the upside, net borrowing costs fell 20% for the quarter and net debt dropped to 14.4 billion euros at the quarter’s end from 16.1 billion euros at the end of the first half, helped by strong cash flow and asset disposals.
blog comments powered by Disqus
  • Patent Update

    Patent Update

    July 28, 2016
    Three-layered hair product from Lauder, palm oil extracts for wrinkle treatment and more in recently awarded patents.

  • Pushin’ the Cushion

    Pushin’ the Cushion

    Christine Esposito, Associate Editor||July 26, 2016
    AmorePacific, the creator of the cushion compact, continues to improve its unique product.

  • Cozy Makes a Splash

    Cozy Makes a Splash

    Melissa Meisel, Associate Editor||July 25, 2016
    Expands reach in CVS and introduces new collection.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.