Unilever reports turnover rise, profit decline

Unilever had an increase of sales in the first half of 2015, but a decline in profit, the Anglo-Dutch consumer goods company announced on Thursday.

The producer of, among others, Lipton tea, Knorr foods, Dove soap, Axe deodorant, Omo laundry products and Magnum and Ben and Jerry's ice cream, recorded an operating profit of 3.8 billion euros (4.17 billion U.S. dollars), 13 percent down compared to the same period last year. Net profit declined by 11 percent to 2.7 billion euros.

Unilever continues to suffer from weak consumer demands, with especially in Europe and North America negligible growth. Underlying sales growth in emerging markets was 6 percent in the first half of this year.

Turnover in the first half of 2015 increased by 12 percent to 27.0 billion euros, compared to the same period last year, mainly due to a positive currency impact of 10 percent. Underlying sales growth was 2.9 percent, with an underlying volume growth of 1.1 percent and pricing up 1.7 percent.

In the second quarter of 2015, Unilever delivered a turnover of 14.2 billion euros, with an underlying sales growth of 2.9 percent, underlying volume growth of 1.3 percent and pricing up 1.5 percent.

Underlying sales growth in the first half was broad-based across the four departments of Unilever, Personal Care, Foods, Refreshment and Home Care. The growth in Refreshment was due to pricing, while volumes drove the performances in Home Care and Foods.

"The first half demonstrates again the progress we have made in the transformation of Unilever to deliver consistent, competitive, profitable and responsible growth, now in the seventh year," commented Unilever CEO Paul Polman in a press release. "We plan for another year of volume growth ahead of our markets, steady improvement in core operating margin and strong cash flow." Enditem