Unilever resists 2009/2010 outlook

Reporting the group’s 2008 full year and fourth quarter results today (5 February), CEO Paul Polman said the business made “solid progress” that was ahead of its target range and protected profit by price increases and savings programmes. He expected Unilever to “emerge from the current conditions stronger and more competitive than ever”. However, he went on: “Given the current economic uncertainty I believe it would be inappropriate at this stage to provide an outlook specifically for 2009 or to reaffirm the 2010 targets. That said, I am confident in the underlying strength of the business and over the longer term expect that we will deliver very competitive levels of growth and margin improvement." Over the year, turnover was 1% up at €40.5 billion while operating profit soared 37% to just over €7 billion Among other highlights, Unilever said it had made E1.1 billion from supply chain and organisational efficiences, disposed of the Boursin cheese and bertolli olive oil businesses and acquired the Russian ice cream company Inmarko. Growth in the savoury, dressings and spreads business had been driven by strong performance in the Americas and in the Asia/Africa/Central and Eastern European markets and by price increases to recover cost increases in edible oils. Hellmann's mayonnaise now used free range eggs and Knorr Stock Pots, using new bouillon gel technology to make more authentic stocks, were introduced. Magnum and Ben & Jerry's ice creams performed well with new products appealing to “consumers' continuing desire for indulgence treats” and tea drinkers were being “successfully upgraded” from loose leaf tea to tea bags and from regular bags to pyramid bags. In personal care, “the latest Axe body spray 'Dark Temptation' with the effect of chocolate,” was “on track to be the most successful variant yet”. Rexona deodorants are being rolled out (sic) in China as the first step to building a market for the category in that country. Laundry products saw sharp increases in commodity costs and prices were raised in mitigation. “Margin enhancing innovation” included “Small & Mighty concentrated liquid detergents, a global relaunch of detergent powders with encapsulated fragrance giving longer lasting freshness, a new version of Comfort fabric conditioner which releases fragrance as clothes are worn, and Cif Acti-Fizz spray cleaners which clean in one quick wipe”.