Food and cosmetics giant Unilever has reported a 24 percent fall in fourth-quarter net profit and predicted tough competition in the current year
By Ian Armitage
The company, which makes Dove personal care products and Ben & Jerry’s ice-cream, said net earnings in the final three months of 2009 came to 906 million euros, while sales were down 4.8 to 9.66 billion euros. Operating profit tumbled to 972 million euros.
For all of 2009, net profit was down to 3.66 billion euros on sales of 39.82 billion euros.
“We made good progress in challenging market conditions,” Chief Executive Paul Polman said. “Our market share improvements were broad-based and improved throughout the year.”
Unilever’s profits were hit by declining sales in Western Europe and by comparisons with last year, when it disposed of its North American detergents business and Bertolli olive oil.
“We have further strengthened our leading positions in developing and emerging markets and made encouraging progress in re-establishing volume growth in Western Europe,” Polman added. “We expect continued pressure on consumer spending power and heightened levels of competitive activity in 2010.”
Full year Highlights
• Underlying Sales Growth 3.5 percent
• Cashflow from operating activities up by 1.4 billion euros, driven by significant improvement in working capital
Fourth Quarter highlights
• Underlying Sales Growth 1.8 percent
• Operating profit in the fourth quarter 2008 included profits on disposals of 611 million euros pre-tax.
• Strong cash delivery sustained in the fourth quarter.
Edited by Ellie Duncan
SOURCE: www.unilever.com