Unilever first half sales up 3.3% in 'mixed' markets

The maker of Rexona deodorant and Magnum ice-creams said full year underlying sales growth would be in the lower half of its multi-year 3% - 5% range, “an improvement in underlying operating margin that keeps us on track for the 2020 target and another year of strong free cash flow”. Second quarter underlying sales growth came in at 3.5%.

Pre-tax profits came in at €4.35bn against €4.33bn a year earlier on turnover that fell slightly to €26.1bn from €26.3bn, reflecting the sale of Unilever's spreads business.

“Growth in our markets was mixed. Market growth in Europe and North America was held back by the impact of weather on ice-cream sales,” Unilever said.

“In the emerging markets we continued to see good momentum particularly in China and South East Asia. India saw strong market growth, though it moderated, as expected. Argentina remains hyperinflationary and high levels of pricing continue to weigh on consumer demand.”

The company said its estimated the 2018 truckers' strike in Brazil increased underlying sales growth (USG) basis points.

“Second quarter growth was suppressed by around 50bps due to weak ice-cream performance; a result of poorer weather, particularly in Europe following two years of very strong summers. 80bps of Argentina price growth in the quarter was excluded from USG due to hyperinflationary status,” it said.