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Unilever set to hit its sales targets

CONSUMER products giant Unilever yesterday said it was on course to hit earnings targets for this year despite slower sales growth in recent weeks.The Anglo-Dutch business said efforts to improve margins on its brands were having an impact on sales in developing and emerging markets. But the group "remained comfortable" with forecasts of low double digit earnings per share growth for 2002 before one-off costs.Updating investors ahead of its first quarter close period, it added earnings growth for the first three months of the year should be around 25pc.

Unilever, owner of the Lever Faberge detergents factory in Port Sunlight, is focusing on its 400 leading brands such as Hellman's Mayonnaise, Dove soap and Magnum ice cream under its Path to Growth strategy.This restructuring programme, which began two years ago, has seen more than 700 smaller brands sold by the group.The disposals mean that overall sales in the first quarter will be euro370m (£227m) lower than a year ago.Unilever said it expected underlying sales growth for the first three months of the year to be 1pc to 2pc based on trading in January and February.

Sales growth from the leading brands is likely to come in at 3pc, down on the 5.3pc recorded for the whole of 2001.The London-based group said the reduced amount of product innovation compared with the first quarter last year was also hampering sales growth.The operating margin would be 150 basis points higher, which Unilever said was a "significant step up" from last year.Unilever's shares were down 7.5p at 575p.Last month the group reported a 35pc increase in pre-tax profits for 2001 to £2.26bn on a 4pc jump in underlying sales.

(Article April 2002 - from the Daily Post)

	[ UNILEVER ] [ SOAP ]
.	Unilever set to hit its sales targets CONSUMER products giant Unilever yesterday said it was on course to hit earnings targets for this year despite slower sales growth in recent weeks.The Anglo-Dutch business said efforts to improve margins on its brands were having an impact on sales in developing and emerging markets. But the group "remained comfortable" with forecasts of low double digit earnings per share growth for 2002 before one-off costs.Updating investors ahead of its first quarter close period, it added earnings growth for the first three months of the year should be around 25pc. Unilever, owner of the Lever Faberge detergents factory in Port Sunlight, is focusing on its 400 leading brands such as Hellman's Mayonnaise, Dove soap and Magnum ice cream under its Path to Growth strategy.This restructuring programme, which began two years ago, has seen more than 700 smaller brands sold by the group.The disposals mean that overall sales in the first quarter will be euro370m (£227m) lower than a year ago.Unilever said it expected underlying sales growth for the first three months of the year to be 1pc to 2pc based on trading in January and February. Sales growth from the leading brands is likely to come in at 3pc, down on the 5.3pc recorded for the whole of 2001.The London-based group said the reduced amount of product innovation compared with the first quarter last year was also hampering sales growth.The operating margin would be 150 basis points higher, which Unilever said was a "significant step up" from last year.Unilever's shares were down 7.5p at 575p.Last month the group reported a 35pc increase in pre-tax profits for 2001 to £2.26bn on a 4pc jump in underlying sales. (Article April 2002 - from the Daily Post)