Consumer goods major Unilever Plc (LSE: ULVR) today released its Q2 report and interim management statement for the first half of the year, eclipsing forecasts which propelled the company to a 5.5% gain on LSE this morning.
Most forecasts had Unilever’s sales volumes sliding and sales posting slower growth, but the Rotterdam- and London-based company, which owns the Ben & Jerry, Dove and Lipton brands among others, said underlying sales increased 4.1%, while volumes were up 2% with no regions ending the period in the negative.
Yet these results amid deteriorating economic environment were achieved at significant costs.
The company had to mirror the strategy implemented by most players in the retail market since the inception of the crisis and resort to price cuts to retain the consumer base, driving the margins down.
Unilever said net profit dipped 17% year on year to €758 million, while quarterly earnings per share after exceptional items slipped 16% to €0.27 and 33% in the first half.
Operating margin declined 60 basis points, a twofold increase from Q1.
“While conditions remain difficult in many markets, I am encouraged by the return to volume growth across all regions and the majority of countries and categories...we continue to focus on restoring volume growth while protecting margins and cash flow for the year as a whole,” said CEO Paul Polman.