Milling & Baking News Corporate Profiles - October 2011 - (Page 122)

Company Overview Unilever P.L.C. Bottom line gains with acquisitions year ago, Unilever P.L.C., Rotterdam, The Netherlands, began a campaign of price reductions to entice consumers to shop Unilever brands. Currently, strategy has involved the company doing some shopping of its own. Unilever made several acquisitions that slowly have helped to advance the company’s profits. “These acquisitions are improving the mix of the company’s portfolio toward higher growth areas in developed markets and filling in category gaps in fast-growing developing and emerging markets,” the company said. Unilever completed its acquisition of the Alberto Culver Co., which owns beauty and personal care brands, in May after receiving regulatory clearances. The company paid $3.7 billion in cash for Alberto Culver, which recorded annual sales of more than $1.6 billion in fiscal 2010, according to Unilever. Unilever also sold its consumer tomato products business in Brazil to Cargill for €260 million. The brands include Pomarola, Tarantella, Elefante, Extratomato and Pomodoro. The new portfolio has delivered mixed results at brand level, but overall performance is encouraging, Jean-Marc Huet, chief financial officer of the company, told investors. A “We expect synergies of around $75 million on a full-year basis, in line with our earlier guidance,” he said. “We continue to expect restructuring and integration costs to be around $150 million in total, with $30 million charged in 2010 and $90 million expected in 2011.” First-half results for Unilever showed the company’s strength in a climate of low consumer confidence and market volatility. The company recorded underlying sales growth of 5.7% with 2.2% volume growth and 3.5% price growth. Earnings per share advanced 10% to €0.77. Emerging markets have played a significant role in Unilever’s growth, and western markets have yielded positive gains despite economic challenges, Mr. Huet said. The company’s business in Asia and Africa continued to grow despite natural disasters in Japan, uncertainty in the Middle East and competitive pressures in the region, he said. In the Americas region, underlying sales growth was low in the first half because of price increases and fierce competition. “Growth picked up in the second quarter with an improved performance from savory, dressings and spreads,” Mr. Huet told investors. Paul Polman, chief executive officer, Paul Polman said savory grew in both volume and price because of strong performance in the emerging markets. “The Knorr jelly bouillon continues to drive growth with the launch of Bouillon Pur in Germany and the extension into affordable sachets in China,” he said. “The Knorr Season and Shake baking bags and PF Chang’s restaurant quality frozen meals continue to grow strongly.” Sales volumes in the company’s Spreads segment stabilized after price increases, Mr. Polman said. Dressings also were impacted by price advances, but media campaigns that encouraged consumers to try innovative uses for the company’s Hellmann’s brand dressing helped maintain volume growth. CP F ast acts Unilever sold its consumer tomato products business in Brazil to Cargill for €260 million. In the Americas region, underlying sales growth was low in the ﬁrst half because of price increases and ﬁerce competition. Sales volumes in spreads stabilized after price increases. 122 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011