FDBusiness.com

Helped by a strong performance in emerging markets, Unilever has increased full year turnover by 10.5% to Eur51.3 billion and exceeded the Eur50 billion mark for the first time. Underlying sales growth was 6.9% comprising volume growth of 3.4% and price growth of 3.3%.

With underlying sales growth of 11.4% during the year, emerging markets now represent 55% of Unilever’s turnover. Group operating profit advanced 9% to Eur7.0 billion and net profit increased by 7% to Eur4.9 billion. The group’s core operating margin improved 30bps to 13.8% and gross margin rose 10bps. Unilever increased its spending on advertising and promotions by Eur470 million at constant exchange rates during 2012.

“These results have been achieved in tough economic conditions, with volatile commodity costs and in an intensely competitive environment,” says Paul Polman (pictured), chief executive of Unilever. “They reflect the progress made in delivering bigger, better innovations and rolling them out faster, improving our execution in the market place and increased discipline driving savings in all areas of the business.”

He adds: “We remain focused on achieving another year of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow.”

With underlying sales growth of 1.8% during 2012, turnover in the food category was Eur14.4 billion. Turnover in the refreshment category reached Eur9.7 billion with underlying sales growth of 6.3%, helped by rising ice cream sales. Indeed, the Magnum brand completed a successful year by passing the Eur1 billion milestone on the back of Magnum Infinity and the recent launches into new countries such as the Philippines. Cornetto and Max both grew strongly in 2012.