Unilever Warns of Emerging Markets Slowdown
Consumer products giant Unilever has reported that a slowdown in its sales from the world’s emerging markets, including India accelerated in the third quarter of 2013 and it now expects growth of no more than 3-3.5% for the period.
“Unilever has seen weakening in the market growth of many emerging countries in quarter three and now expects underlying sales growth of 3 to 3.5 per cent in the quarter,” the Anglo-Dutch multinational corporation said in a statement.
“The emerging market slowdown has accelerated as a result of significant currency weakening. Developed markets remain flat to down.
In the previous second quarter April to June, Unilever reported sales increasing by 5% led by growth in emerging markets where sales rose by 10.3%. However, the company said that despite slower market growth in many emerging countries, it is on track to meet its 2013 priorities.
Commenting on the growth outlook, Unilever chief executive officer (CEO), Paul Polman, commented: “For 2013, we are still on course to deliver against our priorities of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow.
“We continue to grow ahead of our markets and expect underlying sales growth to improve in quarter four.”