LONDON (Reuters) – Unilever reported lower-than-expected fourth-quarter sales on Thursday, hurt by troubles in Latin America and weak growth in developed markets as new Chief Executive Alan Jope took over sterling silver cufflinks. The maker of Dove soap and Ben & Jerry’s ice cream said fourth-quarter underlying sales rose 2.9 percent. Analysts, on average, were expecting 3.5 percent, a consensus forecast supplied by the company showed. Jope, who has been with the company for more than three decades, took charge at the start of the year..
He succeeded Paul Polman, who retired after a decade as CEO during which he drove Unilever toward a vision of a company that valued sustainability as well as profits. The end of his tenure was marred by a dispute with shareholders over a botched attempt to shift the Anglo-Dutch company’s main headquarters to the Netherlands. Jope said Unilever was still considering collapsing the company’s dual-headed corporate structure, an issue he told reporters was “important but not urgent” sterling silver cufflinks.
Jope appears focused for the moment on improving business trends at the group, whose sales are at the bottom end of its medium-term targets, due to issues including hyperinflation in Argentina, intense competition in North America and weak retail environments in France and Germany sterling silver cufflinks. “Let me state.. upfront, that accelerating quality growth will be my number-one priority,” Jope told analysts. Unilever shares fell 2.5 percent as the sales miss overshadowed full-year earnings that were ahead of expectations..
“With growth weak but H2 margins strong, we expect this to fuel the ongoing debate on Unilever’s top line versus bottom line,” Jefferies analysts said sterling silver cufflinks. Unilever reported full-year sales growth of 3.1 percent, in line with its forecast for growth at the bottom end of its 3 to 5 percent forecast range. Looking ahead, it said it expects 2019 market conditions to remain challenging and forecast underlying sales growth again in the lower half of a 3 to 5 percent range, with continued improvement in underlying operating margin and another year of strong free cash flow..
For the forecast to come up to the top half of the range, Jope said he would want to see a sustained turnaround in Latin America and continued improvement in Southeast Asia sterling silver cufflinks. Noting problems in Argentina and Brazil, he called Latin America the most troubled part of the world. “Of course we’d prefer the top half of the range, but in the current uncertain market conditions .. the lower half is where I expect us to be operating,” Jope said. He noted also that the boost to sales growth the company had forecast from M&A was being reduced by the poor performance in China of Blueair, a line of air purifiers it bought in 2016. The business doubled in size from the time of acquisition, but has since shrunk back to where it was..