Unilever: delivers consistent first-half 2012 results

oday (26 July), Unilever released its results for the half year and second quarter 2012. Solid and consistent first half results provide further evidence that we are making progress in the transformation of Unilever to a sustainable growth company.
First-half highlights

Turnover up 11.5% at €25.4 billion with a positive impact from foreign exchange of 1.9% and acquisitions net of disposals of 2.2%

First-half underlying sales growth 7.0% comprising volume growth of 2.8% and price growth of 4.1%. Second quarter underlying sales growth of 5.8%

Emerging markets underlying sales growth up 11.4% in the first half; up 11.0% in the second quarter

Core operating margin flat; increased advertising and promotions investment behind our brands

Core earnings per share up 6% at €0.76; free cash flow at €1.5 billion

The first-half results reflect a strong performance in markets that remain challenging. Consumer confidence remains fragile and the competitive environment intense. The value growth of our markets is driven largely by pricing and reflects the combination of strong growth in emerging markets and sluggish growth in the developed markets where volume growth continues to be negative. In this context, all of our Categories grew, driven by strong innovations and the roll-out of our brands into new markets.

Commenting on the results, CEO Paul Polman said: “Despite deteriorating global economic conditions and a competitive environment which remains intense, we again delivered volume growth ahead of our markets and gained value share across the majority of our business. Our performance reflects continued investment in innovation, brand-building and people, whilst keeping discipline on both costs and execution.”