Unilever Sales Fall on Currencies, Offsetting Better Volume, Prices

LONDON--Unilever PLC reported a 2% fall in first-quarter revenue after unfavorable exchange rates offset growth in volume and price increases at the Anglo-Dutch consumer goods group.

Unilever, whose brands include Dove soap and Ben and Jerry's ice cream, reported revenue of €12.5 billion ($14.3 billion) for the quarter ended March 31. Underlying sales grew 4.7%.

"We are maintaining momentum despite a tougher external environment, with all four categories gaining market share," said Chief Executive Paul Polman, referring to the group's personal-care, foods, home-care and refreshment categories.

"This broad-based growth, including over 8% in emerging markets, shows the validity of our strategy, portfolio management and a step-up in innovation," Mr. Polman said.

Unilever, the world's second-largest consumer-products company after Procter & Gamble Co., is having to navigate through slowing economic growth in some key markets and push into higher-end personal-care offerings.

Unilever last year made a string of small acquisitions in skin care, for example, and is investing in a "prestige" division that sells high-end cosmetics and personal-care products. That has all helped boost growth amid slower or declining sales in other parts of the business, like margarine, one of Unilever's oldest product lines.

The company recently named Marijn Dekkers, the outgoing chief executive of German pharmaceutical company Bayer AG, as its new chairman.

Unilever declared a 6% increase in its quarterly dividend to €0.32 a share.

Write to Rory Gallivan at [e-mail]

(END) Dow Jones Newswires

April 14, 2016 03:05 ET (07:05 GMT)

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