Consumer goods giant Unilever has posted better than expected fourth quarter sales growth, helping it deliver rising full year profits off the back of a strong performance in emerging markets.
The Anglo-Dutch group, which is behind Dove, Marmite and Ben & Jerry's ice cream, posted a 4 per cent increase in underlying sales in the final period of the year, ahead of market forecasts.
Unilever was boosted by a 6.3 per cent increase in emerging markets sales, with brands such as Knorr, Bango and Pot Noodle proving popular.
In Europe, underlying sales nudged up 0.3 per cent as the firm bemoaned “challenging” conditions with subdued volume growth and continued price deflation.
For the full year, Unilever posted a 1.9 per cent increase in turnover to €53.7bn (£46.9bn), while pre-tax profit rose 9 per cent to €8.15bn (£7.1bn).
The results come after the group fended off a €143 bn (£115bn) takeover attempt from Kraft Heinz last year, after which it offloaded its spreads business for 6.8bn (£6bn) to KKR.
Excluding the spreads business, full year underlying sales growth came in at 3.5 per cent.
Unilever chief executive Paul Polman said: “2017 has once more been a year of major change for Unilever.
“With the implementation of a more agile, consumer-facing organisation, we are seeing quality and speed of innovation further improve. At the same time, we have significantly stepped up the delivery from our savings programmes and continued the evolution of our portfolio.”
The Anglo-Dutch group said of its plans to consolidate its headquarters in the UK or the Netherlands that a review of its dual-headed legal structure has “progressed well” and it will conclude it shortly.
Mr Polman added: “Our priorities for 2018 are to grow volumes ahead of our markets, maintain strong delivery from our savings programmes and to complete the integration of Foods & Refreshment as well as the exit from spreads.
“We expect this will translate into another year of underlying sales growth in the 3 per cent - 5 per cent range, and an improvement in underlying operating margin and cash flow, that keeps us on track for the 2020 targets.”
PA
