Rolling coverage of the latest economic and financial news
Here’s Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, on Unilever’s results:
“This is another drab quarter from Unilever with underlying sales growth being entirely led by higher prices and volume declines accelerating in the quarter. Europe was particularly weak with volumes falling by over 10%, and the percentage of Unilever’s business winning market share on a rolling 12 month-basis fell to a disappointing 38%.
Unilever’s new CEO, Hein Schumacher, recognises that the group could and should be doing better. His ‘Action Plan’, announced today, is designed to reinvigorate performance through more impactful innovation, productivity savings and an improved culture.
It looks like consumers are struggling to justify forking out extra for a tub of Ben & Jerry’s as Ice Cream sales continue to struggle. The group’s strengths in emerging markets continue to shine through, despite a slower recovery than expected in China.
It’s closer to home, in Europe, where price hikes are still in double-digit territory and Personal Care’s the only business unit showing volume growth. It’s hardly the end of the world, results were broadly in line with expectations and full-year guidance remains intact.
