Unilever sales grow over 3% on strong emerging market show

Unilever CEO Alan Jope mentioned India as a market that 'grew well albeit slightly slower' than the fourth quarter, while announcing the consumer goods giant’s January-March 2019 quarter earnings on Thursday. He said while overall underlying sales growth was 3.1%, the company’s emerging market business grew better at 5%. “Growth was led by emerging markets and was balanced between volume and price. In India markets grew well albeit slightly slower than the fourth quarter,” he said.

The maker of Dove soap and Lipton tea posted first-quarter global sales of 12.4 billion euro. It said its beauty and personal care business grew by 3.1%, home care grew by 6%, and foods and refreshment grew by 1.5%. The company said it is focused on accelerating growth in the following months to keep it on track for its 2019 guidance of 3%-4%. The Anglo Dutch company’s chief financial officer Graeme Pitkethly said in an earnings call that Unilever is ‘pleased with the consistent performance in India’. “I can't make any further detailed comments on India’s performance until Hindustan Unilever issues its own results. But overall, this is a high quality growth performance from an emerging market, especially when you consider the volatility,” he said. Pitkethly said the market growth “is in the context of continued geopolitical uncertainty around trade wars, some key elections in many countries, and a rise in popular protests”.

“Though these factors impact currencies, inflation, and consumer demand, our local businesses are experienced and responding rapidly and effectively,” he said. A report researcher Nielsen released Wednesday said FMCG sector growth would slow down at 11-12% in 2019, about 2% lower than that in 2018. “We are witnessing softening of growth by 1-2% sequentially every quarter leading to healthy double digit growth in first half of the year followed by a high single digit growth in the second half of the year," Nielsen said.

The sector’s volume growth which peaked in 2018 to about 11% is expected to be healthy but lower at 8.5-9.5% in FY19, the report added.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/unilever-sales-grow-over-3-on-strong-emerging-market-show/68949145