Unilever expects leading brand growth to resume

Anglo-Dutch consumer food group Unilever has posted an 11% increase in third-quarter net profits to �0.86bn ($1.46 bn, 1.25bn euros).

The results were in line with analysts' predictions, despite what the group refers to as "a more difficult business environment".

Unilever is home to well-known brands like Marmite, Walls, Slimfast, Dove, Lux and Knorr.

However the group has revised its 2003 sales growth target for its 400 top brands, for a second time this year, to "below 3%" for the year.

The company is battling to turn around a flagging sales trend, and turnover was virtually unchanged on the same period in 2002, at �8.46 bn ($14.39, 12.29bn euros).

Savings programme

"Whilst we see good progress in the vast majority of our business, this is not yet sufficient to offset the weaknesses in a limited number of under-performing businesses, when taken in conjunction with some one-off factors in the first half of the year," said chairman Niall FitzGerald.

He added that there was still more than a year to go until it reached the end of its Path to Growth savings programme.

During that time the group expects to see the under-performing parts of the business progressively improve, and higher levels of leading brand growth to resume.

It has proposed an interim dividend of 0.59 euros per Unilever NV ordinary share, and 6.16 pence per Unilever Plc ordinary share.