Profits up by 5% for Consumer Goods Giant, Unilever

Published Date : Jan 21, 2015

The New Year for the makers of Ben and Jerry’s ice cream is ushered with a reason to celebrate. The consumer goods giant Unilever, registered a 5% growth in profit in 2014 reaching 5.5 billion Euros.

Despite volatile market conditions, the company was able to fetch expected profit for the year bygone, as announced by a spokesperson for Unilever on Tuesday. 

Unilever mentioned that in spite of experiencing a slight cut down in sales by 2.7% to 48.4 billion Euros, the underlying sales that essentially eliminates currency fluctuations impacting the buying and selling of the business, was raised by 2.9%. 

Paul Polman, the Chief Executive of Unilever said that they were happy that Unilever was able to deliver another successful year of competitive growth in underlying sales despite 2014 being a challenging year characterized by volatile market conditions and fluctuating prices. However, the Chief Executive also added that they are not expecting a significant growth in its markets in 2015 and predicts performance similar to 2014. 

Sources revealed that sales rose during the last quarter of 2014 for Unilever who has brands like Lipton, Dove and Hellman’s mayonnaise under its umbrella. In the last three months of the previous year the company witnessed growth of 2.1% in underlying sales and their turnover was immediately up by 2.4%. 

Unilever registered a dip in underlying sales by 2.l% in Europe in 2014, however rise in underlying sales by 5.4% in America and 4.3% in other emerging markets helped the company to recover loss it incurred in the Europe market. 

Industry experts opined that Unilever’s strategy of reducing the cost of production to focus more on the core business has helped the company to stay afloat even when tough and unfavorable economic conditions were prevalent in many of its market.