Unilever says sales hit by emerging markets slowdown

THE HAGUE, Netherlands – Anglo-Dutch food and cosmetics giant Unilever, seen as a bellwether for global consumer spending, said on Thursday, October 24, that its third-quarter sales had been hit by weakened demand in emerging markets.

Turnover fell 6.5% to 12.5 billion euros ($17.3 billion) compared to the outcome in the same period in 2012.

This included a negative currency impact of 8.5%, the company said in a statement.

Underlying sales were up 3.2%, compared to a 5.9% increase a year earlier.

Growth in emerging markets was up 5.9%, compared to 12.1% in 3Q 2012.

Unilever warned earlier this month of weakening growth in emerging markets, accelerated by currency weakening.

Nevertheless, “emerging markets continue to be the main driver of our growth and, despite the current slowdown, they remain a significant growth opportunity which the company is well-placed to capitalise on,” CEO Paul Polman was quoted as saying.

Emerging markets contribute to more than half of Unilever’s sales, as the owner of Dove soaps and other common household brands shifted its attention away from crisis-hit developed markets.

Unilever, founded in 1930, employs about 173,000 people around the world. – Rappler.com