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Friday, 3 August, 2001, 09:18 GMT 10:18 UK
Upbeat Unilever unveils profit jump
Unilever brands
Consumer goods giant Unilever says it is well-placed to weather an economic slowdown after trimming its huge portfolio of brands.

The Anglo-Dutch giant, the name behind some of the best-known products on supermarket shelves, including Persil detergent, Flora margarine and Dove soap, unveiled a 7% rise in half-year pre-tax profits.

For the second quarter, Unilever reported a higher than expected 54% jump in profits.

In common with rival Procter & Gamble, Unilever has dramatically slimmed down its product portfolio and is now focused on 400 leading brands.

The company says it has been encouraged by figures showing sales growth of 5.1% in the three months to 30 June for its top products.

Difficult conditions

Interim pre-tax profits were up to 2.14bn euros (�1.32bn), based on turnover of 26.43bn euros (�16.31bn), which is an increase of 17% on last year's revenues.

The company added that it was on track to meet its profits forecasts for the year.

Profits in the second quarter rose to 1.514bn euros ($1.33bn) before tax and were inflated by the sale of European brands, including Batchelors and Oxo to Campbell Soup, in May.

"Economies are slowing in many regions," a Unilever spokesman said.

"However, our work on portfolio focus and restructuring strengthens our capacity to cope with difficult conditions."

The group added that its integration of US rival Bestfoods was on track.

"We are meeting the milestones set by our 'Path to Growth' strategy with continuing momentum in the growth of the leading brands."

Ice-cream slump

In Europe, sales were 6% ahead in the six month period, although the figure was just 1% up on an underlying basis as Unilever saw ice-cream sales dip by 9%.

Poor weather, which also affected ready-to-drink tea, and the disposal of some lesser known brands was blamed for the fall in ice cream sales.

Underlying sales growth was stronger in the Western European Foods business, where the success of Flora pro-activ margarine and new spreads, including Bertolli, have lifted demand.

Sales growth in laundry products was 3.5%, while the household care business was 6% ahead because of strong demand for Domestos and Cif wipes.

See also:

22 Feb 00 | Business
Unilever: A company history
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