Unilever's annual turnover falls as growth slows in emerging markets

21st Jan 2014 07:04

- Turnover falls three per cent- Underlying sales rise 4.3 per cent- Margins, profits and earnings increaseConsumer goods giant Unilever reported a three per cent fall in annual turnover to 49.8bn euros as growth continued to slow in emerging markets. The company said emerging markets, including Brazil, India, Russia and Indonesia, were hit by the impact of economic uncertainty and currency depreciation on consumer demand. Nevertheless underlying sales in emerging markets increased 8.4% driven by underlying volume growth of 5.3%. Developed markets declined 1.7%, reflecting poor sales of food items including soups and sauces. Total underlying sales climbed 4.3%, slightly above the 4.2% consensus forecast. Operating profit rose 8% to €7.5bn and net profit was up 9% to €5.3bn. The full-year gross margin jumped 110 basis points to 41.2% at constant exchange rates, boosted by the disposal of low gross margin businesses and a cost savings programme. Core earnings per share edged up 3% to €1.58.Personal care products drove growth during the period with strong performance from brands including Dove, TRESemmé, Sunsilk and Pond brands.The company ended the period with free cash flow of €3.9bn."Looking forward, we anticipate ongoing volatility in the external environment and are positioning Unilever accordingly," said Chief Executive Paul Polman. "Although the investments we have made over the last five years ensure that we are well placed, we are determined to make Unilever even more agile and to fund further growth opportunities by driving out complexity and cost."RD