Unilever warns of slowdown in sales in emerging markets

Anglo-Dutch FMCG firm Unilever has warned of slowdown in sales by up to 3.5 per cent in the July-September quarter of the current financial year due to growth tapering off in the emerging markets, including India.

 

"Unilever has seen weakening in the market growth of many emerging countries in quarter three and now expects underlying sales growth of 3 to 3.5 per cent in the quarter," the company said in a statement.

 

During the April-June quarter, Unilever reported sales growth of five per cent led by growth in emerging markets where sales went up by 10.3 per cent.

 

Explaining the reason for the growth slowing down in the emerging markets, Unilever said: "The emerging market slowdown has accelerated as a result of significant currency weakening. Developed markets remain flat to down."

 

However, the company said that despite slower market growth in many emerging countries, it is on track to meet its 2013 priorities.

 

Commenting on the growth outlook, Unilever Chief Executive Officer Paul Polman said: "For 2013, we are still on course to deliver against our priorities of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow."

 

"We continue to grow ahead of our markets and expect underlying sales growth to improve in quarter four," he added.

     

During the April-June quarter, Unilever's Indian arm Hindustan Unilever (HUL) reported 6.99 per cent increase in net sales at Rs6,687.49 crore as against Rs 6,250.15 crore in the corresponding period last year.

 

HUL's standalone net profit declined by 23.43 per cent to Rs1,019.25 crore on account of an exceptional income generated in the same quarter last year from the sale of properties.

 

In July, Unilever hiked its stake in HUL to 67.28 per cent, following an open offer.

 

HUL's portfolio includes leading brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Sunsilk, Pepsodent, Closeup Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and Pureit.