Unilever expects leading brand growth to resume

The Anglo-Dutch firm said sales of its 400 top brands rose just 1.3% in the first three months of the year as market competition remained intense.

Unilever - whose brands include Dove, Lux and Marmite - said pre-tax profits slipped 8% to 931m euros (�649.2m).

"We are not happy with the short-term sales performance and action is being taken to address this," the firm said.

Diet switch

Net profit before one-off costs rose to 851m euros (�567m) from 798m in the same period last year, while turnover slipped 2% to 9.79bn euros.

The update saw shares in the group fall by more than 6% to stand 36.5p lower at 525p in afternoon trade.

UNILEVER LEADING BRANDS FOOD - Knorr, Lipton, Ragu, Hellman's, Bertolli, Findus, Bird's Eye, Marmite, Flora, Slim-Fast ICE CREAMS - Magnum, Cornetto, Solero HOME CARE - Cif, Surf, Domestos, Comfort PERSONAL CARE - Dove, Lux, Sunsilk, Pond's, Signal Latest Unilever share price

The group said its prestige fragrances division - which includes perfumes such as Calvin Klein - had struggled, while its Slimfast diet food division also suffered.

Unilever has previously blamed the popularity of the Atkins diet, and other low-carbohydrate regimes, for the fall in its diet products range.

Rising competition

In February, the firm ditched its five-year target of 6% growth from its 400 top brand names by 2004.

It added that competition was also heating up in some areas - including increased activity from its rivals in the haircare sector in Japan and the US.

Elsewhere, the company blamed tough economic conditions in certain countries for its problems.

"Germany, France and the Netherlands have been particularly difficult and we have lost some market share in spreads and laundry," Unilever added.