3Q16 RESULTS

Unilever reports sales figures each quarter, with profit updates only at the half-year and full-year. Unilever reported 3Q16 revenues of €13.4 billion, down 0.1% year over year, and below the consensus estimate of €13.9 billion. In the third quarter, the decline was primarily driven by a negative currency impact of 3.4%, which offset underlying sales growth of 3.2%. “With markets remaining soft and volatile, we have continued to transform our business at an accelerated pace,” Chief Executive Officer Paul Polman said. All of the revenue growth figures stated below are on an underlying basis, which excludes exchange rates, acquisitions and disposals.

 PERFORMANCE BY SEGMENT

• Growth in the Personal Care segment slowed to 3.1% due to intense competition, despite extending core brands into more premium segments. Deodorants continued to perform strongly, driven by Rexona Antibacterial deodorants. Good growth in skin care was driven by Simple brand.
• The Food segment grew sales by 1.7%, with a good performance in savory and dressings products. In North America, the rate of decline in sales of spreads has slowed, but this category continued to decline in Europe due to market contraction.
• The Home Care segment delivered growth of 3.9%, driven by successful product launches in higher-margin segments. Fabric conditioners continued to perform well, supported by new product launches of Comfort brand.
• Ice cream delivered good growth in the Refreshment segment, where sales grew 4.5%. This was supported by innovation in premium brands Magnum, Ben & Jerry’s and Talenti. The company is continuing to extend its tea brands into more premium segments.