Ice cream helps giant survive a margarine slip

BOOMING demand for ice cream has helped Unilever overcome another fall in the sales of its spreads such as Flora margarine.

The FTSE 100 consumer goods giant – whose brands also include Marmite, Dove soap, Domestos and Hellmann’s – reported a 5.5pc rise in revenues to £24.6bn in the first half of the year.

Profits soared 22pc to £2.9bn as the company raised prices and cut spending on everything from flights for staff to ingredients and advertising.

Chief executive Paul Polman, who fought off a £115bn takeover bid from US rival Kraft Heinz this year in what would have been one of the biggest deals in corporate history, said the results were further proof of the ‘validity’ of his long-term plan for the business.

The 61-year- old launched a comprehensive review of the business to bolster its defences – including the sale of the spreads division. Ice cream led the way for Unilever amid demand for its Ben & Jerry’s and Magnum ranges.

Polman said the margarine market was particularly tough in the UK and Germany while sales of Magnums ice creams grew at double-digit rates.

He is now looking at bringing Dollar Shave Club, the Californian upstart shaving business Unilever bought last year for £770m, to the UK.

The Dutchman, who has been in charge of Unilever since 2009 and was paid £7.4m last year, said he was transforming Unilever into ‘a more resilient, more competitive and more profitable business’.

Sales were up 3.1pc at the food and refreshment arm. Without the spreads business, sales would have risen 4.2pc.

Unilever raised prices by 3pc in the second quarter and saved more than £888m across the entire first half. Its shares rose 1.7pc, or 75p, to 4389p.