 Slimfast is one of Unilever's many brands |
Anglo-Dutch consumer goods giant Unilever has unveiled a 9% increase in first-quarter pre-tax profits, but has warned that some markets remain tough. The maker of Dove soap, Slimfast diets and Marmite said profits were 1.28bn euros (�876m), with earnings up 25%.
It said that while European markets remain challenging, the outlook was more promising in developing markets.
Last September, after a dire 2004, Unilever issued its first profit warning in its 76-year history.
Under pressure
Its fall from grace was blamed on a clumsy organisation and a lack of competitiveness.
In response, Unilever embarked on a shake-up, which saw the end of its duel-management structure and more money poured into its top brands.
For the first quarter, operating profit grew by 8% to 1.42bn euros, Unilever said, with sales up 2% at 9.27bn euros.
"This year we expect market conditions to remain very challenging in Europe, and margins to continue to be under pressure from increased input costs," said chief executive Patrick Cescau.
"However, performance in developing and emerging markets was better, and here the outlook is more promising."
Shares in Unilever have underperformed the FTSE 100 by 12% over the last year.
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This year we expect market conditions to remain very challenging in Europe
