Anglo-Dutch consumer goods giant Unilever today (4 May) reported increased turnover of 8.6%, benefiting from a 6.3% favourable currency move, while EPS from total operations rose by 7% to EUR1.03 (US$1.306) in the first quarter. However, sales came in below the market expectations, increasing by a disappointing 2.9%.


Patrick Cescau, group chief executive, emphasised that the company’s recovery programme, initiated following the 2004 shock profit warning, was still on track despite the fact that underlying sales fell below analysts expectations.


“Our priorities for 2006 are to sustain top line growth and improve margins. With the first quarter performance we are on track to achieve these objectives and our aggregate market share remains broadly stable since the start of last year,” Cescau said.


Unilever reported that increased marketing expenditure, which has helped to drive its sales-led recovery and enabled the company to post its sixth consecutive quarter of underlying sales growth, decreased its operating margin by 0.2% to 14.8%.
The world’s number three food group said that sales had been hit by “sluggish” European demand throughout the first three-months of the year, with a recent upsurge in commodity prices.
Cescau’s message was upbeat, as he commented: “In Western Europe, we are maintaining market share and there are some encouraging signs of improvement as work continues to return the business to sustainable growth.”


In Europe underlying sales increased by only 0.5% and in the US sales rose by just 1.1%. The emerging Asian and African markets saw more buoyant demand, with sales rising by 8%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.