Unilever profits up despite cost inflation

4th Aug 2011 07:30

Strong growth in emerging markets helped Anglo-Dutch food and household goods giant Unilever post higher sales and profits in the first half, though margins fell back as price rises failed to wholly offset the impact of higher input costs.The maker of Dove soap, Magnum ice creams and a host of other brands, posted turnover of €22.79bn for the first half, up 4.1% from the same period a year ago, while net profit climbed by 9% to €2.4bn. On an underlying basis, sales were up by 5.7%, with growth of 9% in Asia, Africa and Central and Eastern Europe, 5.3% in the Americas and a more sluggish 1.3% in Western Europe."All categories are managing significant input cost increases which, despite pricing actions and savings initiatives, have not been fully recovered in the first half, leading to overall gross margins lower by 230bps (basis points)," Unilever said. "Advertising and promotions expenditure is down 150bps against the high prior year comparator."---RG