Unilever FY14 Profit Rises, Sales Weak; Warns On FY15; Stock Down

(RTTNews) - Unilever's (UN, UL, ULVR.L) shares were losing in the early morning trading in London and Amsterdam, after the Anglo-Dutch consumer goods company warned on fiscal 2015 performance, expecting flat results, and reported weak sales in the year 2014. Annual profit, however, increased from last year.

Chief Executive Paul Polman, stated, "We do not plan on a significant improvement in market conditions in 2015. Against this background, we expect our full year performance to be similar to 2014 with the first quarter being softer but growth improving during the year. We remain focussed on competitive, profitable, consistent and responsible growth."

For fiscal 2014, the company's pre-tax profit grew 7 percent to 7.65 billion euros from 7.11 billion euros a year ago. Net profit attributable to shareholders' equity increased 7 percent to 5.42 billion euros, and earnings per share grew 8 percent to 1.79 euros.

Full-year core earnings per share was 1.61 euros, compared to 1.58 euros last year.

Gross margin declined by 20 basis points to 41.4 percent, while core operating margin grew 40 basis points.

For full year, turnover slid 2.7 percent to 48.44 billion euros from 49.80 billion euros last year, including a negative currency impact of 4.6 percent. At constant rates, turnover grew 2 percent. Underlying sales were up 2.9 percent, ahead of its markets, with volume up 1 percent and price up 1.9 percent.

Globally, the company's markets grew by around 2.5 percent, with flat volumes. Growth was weak in emerging markets, as economic pressures impacted consumer demand. Developed markets were flat, with a modest pick-up in North America partly offsetting market contraction in Europe.

In the year, underlying sales growth in emerging markets slowed to 5.7 percent, while developed markets declined by 0.8 percent. Among segments, Home Care, Personal Care and Refreshment recorded improved performance, but Foods was adversely impacted by spreads.

In the fourth quarter, turnover was 12.09 billion euros, up 2.4 percent on a reported basis, including a positive currency impact of 1.6 percent. On an underlying basis, sales grew 2.1 percent, with a higher contribution from price, but volumes remained weak. As expected, the trade de-stocking in China continued and resulted in a sales decline of nearly 20 percent, the company said.

Further, the Boards of Directors have declared a quarterly interim dividend for the fourth quarter, payable in March, of 0.2850 euro per Unilever N.V. ordinary share and 0.2177 pound per Unilever PLC ordinary share.

Unilever shares were losing 1.61 percent in London to trade at 2,685 pence, and were down 1.42 percent in Amsterdam to trade at 34.26 euros.