Anglo-Dutch consumer goods giant Unilever Plc. (UL: Quote,ULVR.L,UN: Quote) reported Wednesday a higher profit for its fiscal year 2012, benefited by strong performance in emerging markets, even though Europe was weak.
Chief Executive Officer Paul Polman said, “These results have been achieved in tough economic conditions, with volatile commodity costs and in an intensely competitive environment.”
For the full year, net profit attributable to shareholders’ equity grew 5 percent to 4.48 billion euros from the previous year’s 4.25 billion euros. Earnings per share increased to 1.54 euros from 1.46 euros a year ago.
Core earnings, which excluded certain items, increased 11 percent to 1.57 euros per share from 1.41 euros per share last year.
Turnover for the year increased 10.5 percent to 51.32 billion euros. Sales had a 2.2 percent positive impact from foreign exchange and 1.1 percent from acquisitions. Underlying sales growth of 6.9 percent comprised volume increase of 3.4 percent and price growth of 3.3 percent.
For the fourth quarter, total sales were 12.6 billion euros, 7.8 percent higher on an underlying basis, with good volume and price growth. Personal Care, refreshment and home care segments performed well, while sales of foods segment edged up 1.3 percent in part due to difficult markets.
Both its Magnum and Sunsilk joined the group of 1 billion euros brands in its portfolio, bringing the total to fourteen.
The company noted that its markets experienced markedly different dynamics throughout 2012, as emerging markets grew in both volume and value terms, while developed market value remained subdued, with lower volumes.
Emerging markets, which now represents 55 percent of turnover, recorded underlying sales growth of 10.8 percent in the quarter and 11.4 percent in the year. The developed markets grew 4 percent in the quarter and were up 1.6 percent in the full year.
European performance was sluggish reflecting the fragile state of consumer confidence and intensely competitive markets, the company noted. Despite this difficult environment, Unilever delivered positive growth for the year with the UK and France continuing to perform well.
In the year, core operating margin increased 30 basis points to 13.8 percent, and gross margin rose 10 basis points.
The company added that higher commodity costs were offset by increased prices, strong savings programs and the benefits of mix.
Polman further said, “However there is no room for complacency: markets will remain challenging, with intense competition and volatile commodity costs. We remain focused on achieving another year of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow.”
Further, Unilever announced quarterly dividend payable in March 2013. The dividend will be 0.243 euros per Unilever N.V. ordinary share and 0.2039 pounds per Unilever PLC ordinary share.
In London, Unilever shares are currently trading at 2,502.72 pence, up 51.72 pence or 2.11 percent.
In Amsterdam, Unilever shares increased 0.45 euros or 1.51 percent, and are currently trading at 29.92 euros.
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by RTT Staff Writer
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