- Title: Unilever shares slide after warning of sales miss
- Date: 17th December 2019
- Summary: LONDON, ENGLAND, UK (FILE) (REUTERS) VARIOUS OF CUSTOMER LOOKING AT UNILEVER PRODUCTS LONDON, ENGLAND, UNITED KINGDOM (FILE) (REUTERS) VARIOUS OF SHOPPERS INSIDE SUPERMARKET VARIOUS OF CASHIER SCANNING FOOD ITEMS AT TILL
- Embargoed: 31st December 2019 16:32
- Keywords: Ben & Jerry Dove Nestle Unilever sales miss shares down
- Location: UNKNOWN, LOCATIONS / LONDON, ENGLAND, UNITED KINGDOM
- City: UNKNOWN, LOCATIONS / LONDON, ENGLAND, UNITED KINGDOM
- Country: Various
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA002BAD4H3H
- Aspect Ratio: 16:9
- Story Text: Unilever Plc will miss its underlying sales target this year, the consumer goods giant warned on Tuesday (December 17), sending shares in the maker of Dove soap and Ben & Jerry's ice cream into their steepest fall in six months.
In an unscheduled trading update, Anglo-Dutch Unilever also struck a downbeat tone on its prospects for meeting its mid-term target for sales growth of 3-5% next year.
Shares in Unilever were down 5.1% at 1025 GMT, while rival Nestle slipped 1.2%.
Unilever's forecast implies it suffered its lowest fourth-quarter sales growth in more than a decade, RBC analysts said.
Earnings, margins and cash are not expected to be impacted by the slower sales growth, the company said.
Developed economies have been a drag for Unilever for several quarters, where growing numbers of consumers are turning to fresher foods, niche brands or cutting back on spending.
Growth in South Asia - India, Bangladesh, Pakistan, Sri Lanka and Nepal - slowed to 5% this year, marking a "significant deceleration" from last year's 10% rise.
Much of this was caused by a sharp slowdown in consumption in rural India, where growth for the first time is underperforming urban markets, Jope said.
India is Unilever's second-biggest market after the United States, contributing nearly 10% of its group revenue.
The company expects the market to recover in the second half of 2020.
(Production: Chiara Rodriquez)
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