Unilever has shared financial results for the first quarter of 2016. Underlying sales grew 4.7% but turnover decline 2% to €12.5bn amid challenging market conditions. The group stood by its January warning on tough market conditions.
The company said that consumer demand is still “fragile” with volume growth slowing in key markets and only weak growth in emerging markets. Growth remained flat in North America and Europe.
Personal care accounted for €4.8bn of the company’s revenue, growing ahead of the group’s food division. Male grooming was a particular success, thanks to the launch of new Axe products. Deodorants also performed well with the success of new dry sprays in the US and the launch of Rexona Antibacterial.
?TRESemmé’s Beauty-Full Volume range was also said to be a success with its unique reverse conditioning system. Elsewhere, skin cleansing brand Lifebuoy also saw volume growth in emerging markets thanks to a digital and local activation campaign on handwashing.
Volumes grew in Latin America despite challenging economic conditions and reduced consumer incomes. Meanwhile, sales in Europe grew but “promotional intensity” was said to limit profit, particularly in the UK.
Paul Polman, CEO at Unilever, said that markets remain “volatile” after a profit warning issued earlier this year. However, he insisted that the company was “maintaining momentum” despite the difficult environment. He said: “The first quarter demonstrates a strong volume-driven performance, following on from a good delivery in 2015.”
