Unilever’s third-quarter sales fell short of estimates as a result of poor weather in Europe and natural disasters in the Americas reducing demand for its ice creams.
Underlying sales increased by 2.6%, driven by emerging markets growth of 6.3%, while developed markets decreased by 2.3%.
Turnover decreased by 1.6% to €13.2 billion, which included a negative currency impact of 5.1% as a result of the stronger euro. Acquisitions net of disposals added 1.1% to turnover.
Its spreads business declined 2%, an improvement on results earlier in the year. The company said that the preparation for the sale of its spreads unit is ‘fully on track’, with ADM reportedly interested. In September it secured a deal to sell its spreads business in southern Africa.
The company said it is continuing to evolve its portfolio at an accelerated pace to ensure it has the platforms in place for long-term growth in attractive market segments.
In the last three months, it has acquired Weis ice cream in Australia, Pukka Herbs tea in the UK and Mãe Terra organic food in Brazil.
Unilever CEO Paul Polman © World Economic Forum/Flickr
Commenting on the results, CEO Paul Polman said: “The transformation of Unilever into a more resilient, more competitive and more profitable business continues and we are making good progress against the strategic objectives we have set out for 2020.
While conditions in our developed markets remain challenging, we are starting to see signs of improvement in some of our biggest emerging markets including India and China
“The Connected 4 Growth change programme is beginning to make our business less complex and more responsive to fast-changing consumer trends.
“The new organisation is delivering increased innovation speed and our savings programmes are allowing us to step up investment behind new growth opportunities. We expect to reap the benefits over the coming quarters.
“While conditions in our developed markets remain challenging, we are starting to see signs of improvement in some of our biggest emerging markets including India and China.”
Unilever drew attention to its strong growth of Knorr Mealmakers as well as a successful brand relaunch of Hellmann’s.
Innovations within its premium brands are said to be performing well, including the new Magnum pints and Magnum double raspberry and coconut variants.
Leaf tea showed good growth with Lipton launched in Brazil and Argentina, expanding its presence in faster-growing green and matcha segments. Pure Leaf was introduced to the UK after its launch in the US.
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