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* Sales volumes ahead for third successive quart
Unilever beats forecasts as turnaround continues
* Unilever posts 1.8 percent Q4 underlying sales growth
February 4, 2010
Consumer goods group Unilever Plc/NV beat forecasts with a 1.8 percent rise in fourth-quarter underlying sales on Thursday, promising its new-found optimism and recovery under new Chief Executive Paul Polman will continue into 2010.
Polman's policy to spend more on marketing and cut prices to entice cash-strapped shoppers drove a third successive quarter of sales volume growth despite sluggish economies while falling commodity costs helped push up the group's profit margins.
Anglo-Dutch Unilever, the world's third-biggest food and consumer goods group, reported its fourth-quarter underlying sales rose 1.8 percent compared to a consensus of 1.4 percent, while 2009 saw a rise of 3.5 percent against a consensus forecast for a 3.4 percent rise.
"We will continue to focus on volume growth as the main driver for long term value creation, whilst delivering steady and sustainable year-on-year improvement in operating margins and strong cash flow," Polman said in a results statement.
The maker of Hellmann's mayonnaise, Omo detergent and Sunsilk shampoo saw underlying volume growth of 2.3 percent in 2009 which reached 5 percent in the fourth quarter with this seen across most key categories and countries as the group cut prices to reflect the fall in commodity prices.
The results come after US rivals Procter & Gamble and Colgate-Palmolive reported strong growth in the final quarter of 2009, and European rival Henkel posted a strong close of 2009 due to cost cutting.
Unilever posted underlying 2009 earnings of 1.33 euros (R13.89) per share, beating a consensus forecast of 1.29 euros collated by Thomson Reuters I/B/E/S. The group will pay a dividend for the fourth quarter of 0.1950 euros per Dutch listed Unilever NV share and 17.04 pence for its London listed Plc shares.
Unilever Plc shares outperformed the UK market by 8 percent in 2009 as Polman's strategy gained favour, but have only traded in line with the FTSE 100 index and the DJ European Food and Beverage index so far this year.
The Plc shares closed on Wednesday at 19.34 pounds. - Reuters
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