Unilever announce first-half profit increase

Consumer goods giant Unilever have announced a 7 per cent rise in half-year pre-tax profits.

For the second quarter, Unilever, the name behind some of the best-known products on supermarket shelves - such as Persil detergent, Flora margarine and Dove soap - reported a higher than expected 54 per cent hike in profits. In common with rival Procter & Gamble, Unilever has dramatically slimmed down its product portfolio and is now focused on 400 leading brands.

The company says it has been encouraged by figures showing sales growth of 5.1 per cent in the three months to 30 June for its top products.

In Europe, sales were 6 per cent ahead in the six month period, although the figure was just 1 per cent up on an underlying basis as Unilever saw ice-cream sales dip by 9 per cent.

Poor weather, which also affected ready-to-drink tea, and the disposal of some lesser known brands was blamed for the fall in ice cream sales.

Underlying sales growth was stronger in the Western European foods business, where the success of Flora pro-activ margarine and new spreads, including Bertolli, have lifted demand.

(GB)