Unilever has warned that it is expecting a difficult 2016, as its results for 2015 showed a 5% fall in profit to €5.3bn. In a statement, the company said that the 2015 results were “set against the context of challenging market conditions and fragile consumer demand”.
Sales grew 4.1% in the final three months of 2015, but thanks to “slowing economic growth, intensifying geopolitical instability and high currency and commodity volatility” Unilever expects the year ahead to be much tougher.
In the past year, Unilever’s personal care products division had improved on slower growth from 2014 with new products and formulas leading the way. The company launched compressed deodorants in Latin America and improved the formulation of Dove body wash, now present in more than 30 markets. The company also established a Prestige business in 2015, acquiring premium skin care brands Dermalogica, Murad, Kate Somerville and REN.
Paul Polman, CEO at Unilever, commented: “We are preparing ourselves for tougher market conditions and high volatility in 2016. Therefore it is vital that we drive agility and cost discipline across our business.”
Emerging markets are a source of concern for the company this year. Markets dependent on oil and other commodity exports, and those experiencing currency devaluation are expected to prove a particular challenge for Unilever in 2016.
