Broker snap: Unilever resilient in tough environment

4th Feb 2011 13:48

Despite revising Unilever's near-term estimates down, Charles Stanley has maintained its medium-term forecasts because it has faith in the company's ability to weather very challenging operating conditions over the next two years.The Anglo-Dutch food and households goods giant reported an organic sales growth over 2010 of 4.1% with group sales of €44.2bn being exactly in line with expectations.However, the broker says that the operating environment remains extremely tough in 2011 and its performance "is likely to be out of the company's hands in the context of rising input costs, intense competition and severe pressure on consumers' available spending power.""Nonetheless, we are increasingly convinced that the Unilever turn-around is in place and that continued careful stewardship will prove rewarding for shareholders over the medium term." The broker maintains its 'accumulate' position on the shares.