Unilever: Half-year results show solid performance with some challenging markets

 Paul Polman

Paul Polman

July 19, 2018 - Today, Unilever announced its results for the first half of 2018, which show a solid all-round performance despite some challenging markets.

  • Underlying sales growth excluding spreads 2.7% with volume 2.5% and price 0.2%
  • Truckers’ strike in Brazil adversely affected USG by around 60bps
  • Emerging markets underlying sales growth 4.1% with volume 3.3% and price 0.8%
  • Turnover decreased 5.0% including an adverse translational currency impact of (8.9)%
  • Underlying operating margin up 80bps driven by increased gross margin and further reduced overheads
  • Underlying earnings per share up 7.8% after a currency impact of (10.8)%, constant underlying EPS up 18.6%

Commenting on the results, CEO Paul Polman [pictured] says: “Our first half results show solid volume-driven growth across all three divisions, which was achieved despite the effects of an extended truckers’ strike in Brazil, one of our biggest markets. Growth was driven by strong innovation and continued expansion in future growth markets. The margin improvement was of high quality and in line with our strategy, driven by further gross margin progression, increased investment behind our brands and strong savings delivery. More...