Anglo-Dutch Unilever reports "improved performance" in 2006

Feb 8, 2007, 9:11 GMT

Amsterdam - Anglo-Dutch food and household products concern Unilever reported a 10-per-cent rise in net profits Thursday, in what the company described as an 'improved performance' for 2006.

Net profits from continuing operations came in at 3.685 billion euros (4.784 billion dollars), on turnover up 3 per cent at 39.642 billion, Unilever said.

'I am particularly pleased that this improvement is broad-based, with every region and category contributing,' chief executive Patrick Cescau said.

Net profit from total operations rose by 26 per cent to 5.015 billion euros, reflecting a profit of 1.2 billion euros from the sale of European frozen foods businesses in the fourth quarter.

Cescau said he expected the business environment in 2007 to be 'broadly unchanged, with consumer demand remaining modest in Europe but robust elsewhere.'

'Prospects for home and personal care input costs are more favourable than in 2006 but there has been no let-up in the rise of foods commodity prices,' he noted.

The company has set itself a long-term target of sales growth at 3-5 per cent a year.

Sales continued to grow in Asia and Africa, where turnover rose 7.7 per cent on the year, with China, India and Indonesia showing strong growth.

'India grew well across all major categories. A mix of global, regional and local brands are driving growth, notably Wheel and Surf Excel in laundry and Clinic in hair care,' Unilever said.

'A second year of excellent growth in China stemmed from a combination of market growth, better distribution and innovations behind global brands such as Omo, Lux, Ponds, and the local toothpaste brand, Zhonghua.'

This contrasted with growth of just 1 per cent in the company's European base.

Turnover rose 3.7 per cent in the Americas.

Unilever's brands include Dove soap, Omo and Persil washing powders, Bertolli frozen foods and Knorr soups.