Unilever likely cautious on 2011 after strong Q4
Consumer goods giant Unilever Plc/NV is set to report on Thursday a strong end to 2010, while striking a cautious note for 2011 due to soaring commodity costs and tough rivalry in emerging markets.
February 03, 2011 / 08:59 IST
Consumer goods giant Unilever Plc/NV is set to report on Thursday a strong end to 2010, while striking a cautious note for 2011 due to soaring commodity costs and tough rivalry in emerging markets.
Chief Executive Paul Polman, in his two-year tenure, has cut prices to inject a more aggressive competitive edge to the Anglo-Dutch group, but Unilever shares have underperformed recently on concerns about the pressures that lie ahead.The world's third-biggest food and consumer goods group, which makes Knorr soup and Dove soap, faces sharp rises in key commodities such as vegetable oils, tea, milk and crude oil.It must gauge whether it can pass on these rises to consumers in a number of slow-recovering economies.Last month, the group's 51% owned Hindustan Unilever reported lower quarterly profit, and US rivals Procter & Gamble and Colgate-Palmolive posted dips in quarterly income due to sluggish sales. Unilever is expected to show fourth-quarter underlying sales growth of 4.2%, up from the third quarter's 3.6%, with quarterly operating margins seen flat at 13%, according to a company-compiled poll.Full-year underlying sales are seen up 3.9%, against 3.5% in 2009.For the fourth quarter, earnings per share are seen at 0.30 euros, after 0.27 euros in 2009, and for the full year at 1.44 euros, up from 1.33 euros. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
