The giant consumer goods company Unilever has recently unveiled their Q3 performance and the results were lackluster and stale due to several hindrances last quarter. Unilever also manages to miss the quarter’s sale target and forecasts, and they are pointing that Hurricanes from America and the disastrous weather in Europe weighed the whole quarter down.
Looking at the last quarter which ended last September, America has been ravished by two huge Hurricanes that prompted state shutdowns and these calamities have also prompted several local refineries to close which resulted in another supply glut.
Unilever’s Quarter Blunder
As most news facets and organizations have pointed out, the company’s sales were relevantly poor last quarter and were sluggish due to the natural calamities that hit the duration of the third quarter. Looking at the percentage basis, Unilever’s sales for the third quarter were up by 2.6% which was a slow-down in the previous pace the company has in the latter quarter.
Looking at a year ago, the company’s sales for the same quarter were at a massive 3.2%. The sales figures were also way below what most analysts expected which was at an incredible 3.9%. Following the announcement of the enormous dip in sales figure, the company’s shares quickly followed sagging at a massive 4% low before easing on subtle figures after.
One of the heaviest things that weighed the company’s overall sales progression last quarter was with North America’s sales dropping by 2.9%. Majority of analysts are also mentioned that its second and third biggest states by sales, which were Florida and Texas, were massively devastated with the past Hurricanes and even the Caribbean’s natural calamities gave the company a proper beating.
Unilever Quarter Highlights
On the more positive note, the company’s turnover was increased by a massive 3.1% after trailing for 3 straight quarters or nine months while turnover excluding the spreads was at 3.5%. The emerging markets underlying sales growth in the previous quarter was at 6.3% with volume up by 1.8%.
Unilever’s CEO’s Statement
The company CEO, Paul Polman noted that, “While conditions in our developed markets remain challenging, we are starting to see signs of improvement in some of our biggest emerging markets including India and China.” and that “The new organization is delivering increased innovation speed and our savings programmes are allowing us to step up investment behind new growth opportunities.”
Polman also said, “We expect to reap the benefits over the coming quarters.” And “For the full year, we continue to expect underlying sales growth within the 3 – 5% range, an improvement in underlying operating margin of at least 100 basis points and strong cash flow.”
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