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Last Updated: Thursday, 4 August 2005, 10:07 GMT 11:07 UK
Weak Europe hits Unilever profits
Magnum ice cream
Magnum ice cream is one of Unilever's brands
Consumer good giant Unilever has described trading in western Europe as "difficult" as it reported a fall in second-quarter profits.

Profits in the three months to June fell 20% to 1.12bn euros (�774m; $1.4bn) from 1.4bn euros a year ago.

The Anglo-Dutch firm said turnover rose to 10.2bn euros but a marketing drive to boost sales had eaten into earnings.

The profit figure was also hit by a 353m write-down in the value of its Slim Fast business.

Costs squeeze

"Sales in western Europe were disappointing in a challenging environment, particularly in the UK, France and the Netherlands," said Unilever's chief executive Patrick Cescau.

UNILEVER BRANDS
Magnum ice cream
Dove soap
Hellman's mayonnaise
Lipton Ice Tea
Knorr soups
Birds Eye frozen foods

The results left the firm's profits 8% lower for the first six months of the year at 2.4m euros.

Mr Cescau said that, in general, product market shares had stabilised since the start of the year, as Unilever benefited from "keener pricing" and "sharper execution in the way in which we bring our brands to the market".

But he added: "Looking forward, we do not expect significant change in the market environment in the rest of the year."

He warned rising costs would continue to squeeze margins and so the group would remain focussed on improving growth and competitiveness.

The results left the firms profits 8% lower for the first six months of the year at 2.4bn euros.




SEE ALSO:
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