LONDON — Profits at Unilever, the owner of brands such as Dove, Vaseline and Lifebuoy, saw first-half profit climb 12 percent to 3 billion euros, or $4.11 billion, despite a dip in turnover.
Turnover in the six months to June 30 fell 5.5 percent to 24.1 billion, or $33.02 billion, due to a slowdown in emerging markets, static mature markets — and the adverse effects of currency.
Dollar figures have been converted at average exchange rates for the six-month period.
At constant exchange rates, turnover rose 3.3 percent, and profits 24 percent, the latter boosted by disposals and one-off items.
“The first half again shows consistent top and bottom line progress despite significant headwinds,” said Paul Polman, the company’s chief executive officer.
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“Our markets have been challenging, and we have experienced a further slow-down in the emerging countries whilst developed markets are not yet picking up,” he said, adding there was “little sign of any recovery” in North America or Europe. “We continued to grow ahead of our markets driven by strong innovations such as Ben & Jerry’s Cores, compressed deodorants in Europe, Regenerate Enamel Science in oral and Skip Dual Action capsules. At the same time, we continue to invest for the long term with our program to take our brands into new countries with the launches of Lifebuoy in China, Omo in Arabia and Clear in Japan.”
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Overall, growth at Unilever was ahead of the markets, the company said: Emerging markets grew 6.6 percent, with prices up 4.4 percent and volume growth of 2.1 percent. Developed markets grew by 0.3 percent in the second quarter, with positive volume growth partially offset by declining price, Unilever said.
All categories grew with good performances from home care, personal care and refreshment, according to Unilever.
The personal care category grew, thanks in part to recent innovations, Unilever stated. The compressed aerosol range in Europe — with its smaller and more environmentally-friendly packaging — was a multiple award-winner at the CEW UK 2014 Awards earlier this year.
In oral care, the company introduced the premium toothpaste Regenerate Enamel Science in the U.K. It is a toothpaste and serum system that aims to regenerate enamel with the same mineral which makes up tooth enamel.
In the statement, Polman said the company remains focused on achieving another year of “profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow.”