Unilever Sees First-Half Profit Growth But Slowdown in Emerging Markets

By Peter Evans

LONDON-Unilever PLC (ULVR.LN) Thursday indicated a further sales slowdown in emerging markets, even as first-half profit grew on the back of a number of disposals.

The maker of Magnum ice cream and Axe deodorant posted a first-half net profit of EUR2.82 billion, compared with EUR2.43 billion in the same period last year, on revenue down 5.5% at EUR24.10 billion.

Sales growth in emerging markets, where Unilever does nearly 60% of its business, was 6.6%, down from 10.3% in the year-earlier period.

Unilever said there had been a negative currency impact of EUR413 million on operating profit during the first half. Like other consumer-products companies, Unilever has suffered from the devaluation of emerging-market currencies in the past year, reducing the value of its sales.

"Our markets have been challenging and we have experienced a further slow-down in the emerging countries whilst developed markets are not yet picking up," said Chief Executive Paul Polman.

Write to Peter Evans at [e-mail]

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