Food sales volumes fell at Unilever in the second quarter of 2012 after an increase in the first three months of the year, highlighting the current challenging nature of the sector.
Unilever, which owns food brands including Knorr stock cubes and Flora butter, today (26 July) reported a 2.4% decline in underlying food volumes for the second quarter.
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Falling spreads volumes in North America were a factor in the performance of the division, which is Unilever’s second largest behind personal care.
A 3.4% increase in prices helped underlying food sales rise 0.6%, leading to turnover of EUR3.6bn (US$4.37bn).
The lower food volumes in the quarter led to a 1% decrease over the first half of the year. Underlying sales increased 3.2% thanks to price hikes, with turnover reaching EUR7.1bn.
Unilever’s refreshment division, which includes ice cream, reported a 1.4% fall in volumes in the quarter. The poor weather in Europe hit ice cream sales, Unilever said.
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By GlobalDataNevertheless, shares in Unilever rose in early trading in London today (26 July) as organic sales growth and core margins beat analyst forecasts. Personal care and emerging markets, where Unilever predominantly sells non-food products, helped boost sales. Net profit increased 1% to EUR2.4bn.
Click here for coverage of Unilever’s conference call with analysts.
