Unilever sales growth slows in India

BRITISH-DUTCH transnational consumer goods giant Unilever revealed on Thursday (17) that its third-quarter growth continued to soften in India.

Announcing the results for the third quarter of 2019, the company said: “Sales growth in India remained stable and competitive in a slowing market.”

In Europe and North America, the company’s market growth remained low. South East Asian markets continued to grow well, while growth in India softened further and China slowed a little. In Latin America, the economic environment remains difficult, the company said.

The company’s latest quarterly results show underlying sales growth of 2.9 per cent, led by its emerging market business which grew 5.1 per cent, and homecare division which grew 5.4 per cent.

It revealed an underlying sales growth of 2.9 per cent, with 1.4 per cent from volume and 1.5 per cent from price.

The company's turnover grew by 5.8 per cent, driven by sales growth, which included a positive impact of 2.3 per cent from currency and 0.8 per cent from acquisitions.

Commenting on the results, Unilever Chief Executive Officer Alan Jope said: “We have maintained momentum in the quarter, with a good balance between volume and price. Emerging markets and homecare have been the key growth drivers. We will step up competitive top-line performance through innovation and portfolio evolution to serve the faster-growing geographies and channels.

“...for the full year, we continue to expect underlying sales growth to be in the lower half of our multi-year 3-5 per cent range, an improvement in underlying operating margin that keeps us on track for the 2020 target and another year of strong free cash flow.”

The company’s foods and refreshment underlying sales grew 1.7 per cent, with volume down 0.2 per cent and pricing at 1.9 per cent.

In India, efforts to develop the green tea market with new Lipton variants are driving the share and penetration levels for the category, Unilever said.

The company’s beauty and personal care underlying sales grew 2.8 per cent, with 2.1 per cent from volume and 0.7 per cent from price.

Homecare underlying sales grew 5.4 per cent, with 3.2 per cent from volume and 2.1 per cent from price.