Unilever Copes With Currency Woes -- WSJ
April 15 2016 - 3:03AM
Dow Jones News
Consumer-goods group reports 2.3% drop in revenue on currency
fluctuations
By Saabira Chaudhuri
LONDON -- Unilever PLC reported a rise in underlying sales for
the first quarter as it sold more products at higher prices, but
headline results were weighed down by currency volatility.
The Anglo-Dutch consumer goods group, whose brands include Dove
soap and Ben and Jerry's ice cream, reported a 2.3% fall in revenue
to EUR12.5 billion ($14.3 billion) for the quarter ended March 31,
down from EUR12.8 billion a year earlier.
Underlying sales -- which strip out foreign-exchange impacts --
grew 4.7%, meeting analyst estimates. Underlying sales in emerging
markets increased 8.3% in the first quarter, up from the 5.4%
growth Unilever reported a year earlier.
Unilever has been working to mitigate the impact of a turbulent
macroeconomic environment by raising prices and releasing premium
versions of its products. The company has also adopted so-called
"zero-based budgeting" or justifying each year's expenses from
scratch to rein in costs.
"With markets remaining volatile, we continue to focus on
driving agility and resilience in our business," said Chief
Executive Paul Polman on Thursday.
The results come as rival Nestlé SA reported a 3.9% rise in
organic sales for the three months and confirmed its full-year
outlook of organic growth in line with 2015.
Unilever reported a 5.8% rise in underlying sales at its
personal-care arm, a business that has been a priority as Unilever
shifts away from being a food-focused company into one that
increasingly sells body wash and face cream.
The company reported 7% underlying growth in its home-care
division and 3.8% in its refreshment business which includes ice
cream and tea.
The foods business remained a relative laggard, growing by 1.9%
as Unilever said sales in its spreads business continued to decline
despite a new campaign in the U.K. highlighting the health
credentials of its Flora margarine brand.
Unilever reported a 6% increase in its quarterly dividend to
EUR0.32 a share.
--Rory Gallivan contributed to this article
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
(END) Dow Jones Newswires
April 15, 2016 02:48 ET (06:48 GMT)
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