Economy

Unilever's results disappoint as new CEO takes charge

Unilever's results disappoint as new CEO takes charge”

In the fourth quarter of 2018, sales dropped 5.3 percent to 12.15 billion euros ($13.9 billion).

The Anglo-Dutch group, which is working to move on from last year's botched plan to shift its main headquarters to the Netherlands, saw its shares fall almost 3 percent on Thursday as the sales miss overshadowed full-year earnings that were ahead of expectations.

It was the Anglo-Dutch consumer giant's first set of results since Alan Jope took over as chief executive on January 1.

Previous year the company abandoned plans to leave its United Kingdom headquarters and move its primary listing to the Netherlands following a backlash from shareholders.

"Let me state. upfront, that accelerating quality growth will be my number-one priority", Jope told analysts.

In terms of the group's individual divisions, its Beauty & Personal Care arm saw sales rise 3.1%, driven by a 2.5% volume gain, with its biggest brand, Dove, seeing "another year of broad-based growth".

Unilever said it expected sales growth in 2019 to be in the lower half of the forecast range, but that it remained on track to meet its 2020 goals of improving operating margins and converting net profit into free cash flow.

For the forecast to come up to the top half of the guidance, Jope said he would want to see a sustained turnaround in Latin America and continued improvement in Southeast Asia. This includes deodorants made in Britain and ice creams made in continental Europe, it said on Thursday.

Then-chief executive Paul Polman stepped down in the wake of the row and was replaced by Alan Jope.

Underlying operating margin for the year increased by 90 basis points, the company said, while underlying earnings per share were up 5.2%.

Unilever announced in a statement this morning that its underlying sales growth was 2.9 percent previous year. The underlying sales from Unilever's food and refreshment division, excluding spreads, grew 2.3% with 1.6% from volume.

For the full year, Unilever reported turnover of €49.6 billion ($57.05 billion), excluding its divested spreads business, with underlying sales adding 3.1 percent, in line with expectations.



Like this

loading...
loading...

Latest


02 February 2019
Elliot Daly gets nod for England’s Six Nations opener
England are second favourites with a 28 per cent chance of winning, while Wales are third with 24 per cent. Margin by which Ireland beat England during last season's Six Nations grand slam run.

02 February 2019
Groundhog doesn't see his shadow, predicting early spring
Saturday, Punxsutawney (puhnk-suh-TAW'-nee) Phil emerged from his burrow in Pennsylvania at sunrise and didn't see his shadow. With the creation of the club came the rise of Punxsutawney Phil , the groundhog being elevated to global celebrity status.

02 February 2019
China says it's even colder on the Moon than we thought
The Caribbean Astronomy Society experts also explained that "extreme temperatures are experienced on the dark side of the Moon". Instead, the same side of the moon always faces Earth, and the far side has been hidden from view for all of human history.

02 February 2019
Davis Cup: Seppi outclasses Ramkumar to give Italy 1-0 lead
World No 37 Seppi beat Ramkumar Ramanathan 6-4, 6-2 in the new Davis Cup format cut from the best of five sets to three. Berrettini began the second set exactly the way he started the first, breaking Prajnesh to take a 1-0 lead.

02 February 2019
College Student Froze To Death In Iowa Amid Polar Vortex
A freshman at the University of Iowa froze to death this week after being found unconscious behind a building at the school. The National Weather Service says the wind chill around 3 a.m. was negative 51 degrees (negative 46 Celsius).

02 February 2019
Measles outbreak revives debate over vaccine laws
At least 43 people in Washington and OR have fallen ill in recent weeks with the extraordinarily contagious virus. The best defense against infection is vaccination, which the CDC says is "about 97 percent effective".

02 February 2019
Northam Apologizes For Yearbook Photo Of Blackface And KKK Robes
Former NBC journalist Megyn Kelly stirred controversy in October for defending blackface in Halloween costumes. Northam and his brother attended desegregated public high school, where Northam played basketball and baseball.

02 February 2019
Ole Gunnar Solskjaer future 'rests on Paris Saint-Germain result'
The 23-year-old wanted to leave Old Trafford in the summer and the prospect of him signing a new deal with Jose Mourinho in charge appeared unlikely.

02 February 2019
Police raid Melbourne Cup-winning trainer's stables
He is now the most successful trainer in the national trainer's premiership, and counts hundreds of horses as part of his stable. Victorian Racing Minister Martin Pakula said the investigation showed authorities were enforcing rules "without fear or favour".

02 February 2019
Tekashi 6ix9ine Has Plead Guilty & Is Cooperating With Feds
The rapper is best known for his songs "Fefe", which features Nicki Minaj, and "Gummo", which launched his career on SoundCloud. Tekashi69 is in a world of legal troubles, and he knows it. 6ix9ine isn't expected to receive his sentence until next year.