Unilever pins its hopes on global surge

MAGNUM ice cream and Marmite maker unilever hopes global demand for its ‘prestige’ products will offset weak growth in Europe and North America.

As unilever reported betterthan- expected six-month sales, chief executive Paul Polman warned trading remained challenging and growth in Europe and the uS, where it makes 40pc of its sales, was negligible.

Sales in the first half reached £19bn, 12pc higher at current exchange rates and up 1.8pc at constant exchange rates compared to last year. But pre-tax profit dropped 14pc to £2.5bn.

Polman said slower economic growth and rising debts in the uK and Europe could mean it is ‘worse than 2007/2008’ while overall consumer demand is weak. He s ai d: ‘ I am still cautiously optimistic.’

Sales for the six months to the end of June i n emerging markets, which generate nearly 60pc of sales, grew 6pc, boosted by Latin America. Sales in China recovered in the period, following big falls last year, and unilever said its tie-up with website Alibaba was helping i t reach rural China.

Food sales rose 1.4pc to £4.5bn and personal care – from Dove soap to TRESemme shampoo – rose 3pc to £7bn. Its refreshments business grew 2.7pc and homecare rose 4.5pc.

unilever has been investing in upmarket skincare brands. It bought REN SkinCare, Kate Somerville, Dermalogica and Murad and a new division called Prestige has been created. Polman said this division has huge growth potential and unilever is now the second largest personal care company in the world after L’Oreal.

Analyst Darren Shirley at Shore Capital said: ‘unilever will be a winner in global fast moving consumer goods, with its leading emerging markets exposure expected to lead to superior topline growth.’

Shares rose 46p to 2905p.