Anglo-Dutch consumer products giant Unilever says it is sticking to its earnings targets after seeing first-quarter operating profits rise by 18 per cent before one-off costs.
The group is focusing on 400 key brands such as Hellman's Mayonnaise, Dove soap and Magnum ice cream under its "Path To Growth" strategy.
The restructuring programme has seen over 700 brands sold, including the group's US corn and corn oil products business earlier this week.
First-quarter turnover fell by 1 per cent to €12.3 billion. But on an underlying basis, sales rose by 2 per cent and the 400 key brands recorded growth of 3 per cent.
With margins also benefiting from the restructuring, operating profits rose by 18 per cent to €1.8 billion before one-off costs. Pre-tax profits climbed to €962 million, a jump of 62 per cent.
Chairman Mr Niall Fitzgerald says the leading brands will account for around 90 per cent of sales by the end of the year, up from the current 84 per cent.
Last month, the London-based firm said first quarter-sales growth would be hit by its efforts to bolster its margins and a lower number of product launches.
Underlying sales growth as a whole in Europe was 2.4 per cent during the first three months of the year bolstered by Knorr and Hellmann's in the UK. Ben & Jerry's ice cream and SlimFast helped underlying growth in the US come in at 2 per cent, with Ragu Express snack pots also making progress.