Unilever’s Long-term Focus is Paying Off

 Breaking News
  • Coca-Cola European Partners to Remove 4,000 Tonnes of Single-use Plastic by Swapping Shrink Wrap For Cardboard in Western Europe Coca-Cola European Partners, will be replacing plastic shrink wrap with cardboard for its can multipacks across Western Europe, removing approximately 4,000 tonnes of single-use plastic per year across the region. This is the latest move in Coca-Cola’s commitment to tackle packaging waste and remove all unnecessary single-use plastic from its secondary packaging. Plastic shrink wrapping is used [...]...
  • EU Leading in Global Agri-food Trade The EU has been confirmed for yet another year in its position as the largest global exporter of agri-food products, with sales reaching €138 billion in 2018. Agriculture products represent a solid share of 7% of the value of EU total goods exported in 2018, ranking fourth after machinery, other manufactured goods and chemicals. Agriculture and [...]...
  • Is ‘Flexitarianism’ the Future? A workshop held recently at the University of Nottingham has revealed that ‘flexitarianism’ is a new and growing trend amongst British consumers. Delegates at an event that discussed plant-based diets heard how eating more plant-based products represented a sustainable future for food and drink production. Organised by the Agrifood Training Partnership (AFTP), and chaired by AFTP [...]...
  • Chivas Brothers Opens New Head Office Chivas Brothers, the Scotch whisky business of Pernod Ricard, has opened a new 27,000 sq ft head office in the centre of Glasgow. Jean-Christophe Coutures, chairman and chief executive of Chivas Brothers, says: “We need to keep moving with the times and this is the beginning of a new and exciting chapter for Chivas Brothers [...]...
  • Unilever Achieves 100% Renewable Electricity Across Five Continents Unilever has announced that its factories, offices, R&D facilities, data centres, warehouses and distribution centres across five continents are now powered by 100% renewable grid electricity. As far as possible, Unilever’s transition to renewable electricity has been delivered through supporting the development of local renewable energy markets, with 38% of its grid electricity supplied through [...]...

Unilever’s Long-term Focus is Paying Off

Unilever’s Long-term Focus is Paying Off
July 22
12:28 2016

Unilever has reported 4.7% rise in underlying sales growth to €26.3 billion for the first half, ahead of its markets, with volume up 2.2%. Sales increased by 5.4% at constant exchange rates but decreased by 2.6% at current exchange rates. Operating profit was down by 0.1% to €3.8 billion at current exchange rates and net profit rose 2.0% to €2.7 billion.

“Our first half results further demonstrate the progress we have made in the transformation of Unilever to deliver consistent, competitive, profitable and responsible growth,” says Paul Polman (pictured above), chief executive of Unilever. “Despite a challenging environment with slower global economic growth and intensifying geopolitical instability, we have again grown profitably in our markets, competitively and driven by strong innovations.”

He adds: “This consistency of performance, achieved during a period of high volatility and accelerating change, shows that our long-term focus is paying off. We are seeing the benefits from delivery against the four differentiated category strategies that continue to guide investment in our brands, our infrastructure and our people.”

UnileverFoodSolutionsGrowth in Unilever’s Foods category accelerated with a good performance in savoury and dressings and a continued decline in spreads as a result of the market contraction in developed countries. Savoury showed good growth driven by cooking products in emerging markets, innovations around naturalness such as Knorr Mealmakers with 100% natural ingredients in Europe and local brands such as Bango in Indonesia and Robertsons in South Africa. Hellmann’s grew strongly in dressings helped by the convenient squeeze packaging with proprietary easy-out technology, the launch of Carefully Crafted and Organic variants as well as the expansion into Italy and Belgium. In spreads Flora highlighted its plant-based health credentials with a new advertising campaign and introduced a dairy-free variant in the United Kingdom. Core operating margin in Food was down 70bps due to gains on pension plan changes in the prior year and higher restructuring costs.

UnileverIceCreamLineWithin Unilever’s Refreshment business, ice cream delivered good growth driven by margin-accretive innovations behind premium brands, such as the new Magnum Double range, the Ben & Jerry’s ‘Wich sandwich and dairy free range, as well as premium desserts under Breyer’s Gelato and Carte D’Or Sorbet. Unilever continued to develop the value segment with a new yoghurt variant of the smaller-sized Cornetto. In leaf tea, the group has been building its presence in more premium products with T2 and machine-compatible tea capsules. Lipton and PG Tips continued to extend in the faster-growing green and speciality teas segments where Unilever is still under-represented. Core operating margin in Refreshment was up 90bps driven by improved mix and savings in ice cream as well as brand and marketing efficiencies.

Unilever’s other two categories are Homecare and Personal Care.

“We have been preparing ourselves for tougher market conditions in 2016 and do not see any sign of an improving global economy,” remarks Paul Polman. “Our priorities continue to be volume-driven growth ahead of our markets, steady improvement in core operating margin and strong cash flow.”

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here