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Unilever Reports Sales Growth

September 8, 2006

Unilever Plc/NV reported a rise in sales growth to 3.9% in its second quarter, but underlying margins slipped as the company spent heavily on recovery and its shares declined.
Unilever is in the midst of a sales-led recovery to get back on a sustained growth path after its shock profit warning in 2004. But heavy spending behind its brands pushed underlying margins down one percentage point in the quarter while new 2010 long-term growth targets were considered unimpressive by analysts given the performance of Unilever’s main rivals.
Chief executive Patrick Cescau expects to meet his 2006 outlook for sustained sales growth and a margin above 13.4% in spite of rising commodity costs.
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