Unilever withdraws growth outlook, says India business impacted amid lockdown

Global FMCG major Unilever on Thursday said its growth in India has been hit by both slowing market and the coronavirus-forced lockdown that led to a halt in production and shipping activities for a number of days.

The Anglo-Dutch firm has also withdrawn its growth and margin outlook for 2020, citing the impact of the pandemic and subsequent containment measures taken by authorities and a shift in demand patterns of the geographies where it operates.

Though the FMCG major has witnessed upswings in sales of hygiene and in-home food products, the crisis has affected particularly its food service and ice cream business, Unilever said in its trading statement for the first quarter ended March 31.

Unilever also witnessed a major impact on the businesses in China and India, two of its major markets where restrictions were imposed by the respective governments to contain the spread of COVID-19.

China declined as a result of the downturn in food service, out of home ice cream and retail sales during the lockdown. Growth in India was impacted by both the slowing market and the lockdown implemented at the end of March, which stopped production and shipping for a number of days, Unilever CEO Alan Jope said in a statement.

He further said, "Underlying sales growth was zero per cent with 0.2 per cent from volume and negative 0.2 per cent from price. Developed markets grew 2.8 per cent whilst emerging markets declined 1.8 per cent."