The Dutch-British food and personal care giant Unilever today reported a 12% rise in underlying net profit for 2001 and repeated its target of low double-digit earnings growth for this year.
The world's largest consumer goods group said its net profit came in at €3.6 billion - at the top of market expectations - on sales up 11% at €53.4 billion. Pre-tax profits for 2001 were up 35% at €3.7 billion.
Unilever said sales growth from its top 400 brands, including Hellmann's mayonnaise, Magnum ice increase and Lux soap, rose 5.3% last year, compared with 3.8% growth in 2000. Around half of this rise came from price and the other half from volume.
Unilever Chairman Niall Fitzgerald said trading conditions last year had been more difficult than envisaged. But he said the company was experienced in dealing with difficult economies like Argentina.
'We do not produce leading edge products. People still have to eat, wash and beautify themselves. Even in Japan, our business has been growing at 10% over the past three to four years despite economic problems there,' he said.
'We will hit out double digit earnings target this year. The integration of Bestfoods (acquired in October 2000) is going extremely well. We are sustaining our leading brands growth, margins are improving and cash flow is strong,' Fitzgerald added.
