Anglo-Dutch consumer goods giant Unilever said today it expected to deliver its target of low double-digit earnings per share growth for 2002, despite sluggish first-quarter sales.
The group, whose brands include Omo detergent, Knorr soups and Dove soap, said it expected earnings per share growth of around 25 per cent in the first quarter, although sales growth of its top 400 brands will slow to around three per cent in the first quarter.
Overall, underlying sales are expected to be just one to two per cent ahead due to slower sales in emerging and developing markets, falling sales of its secondary brands and fewer new product launches in the first three months of the year.
In addition, the disposals of brands will see the group's reported first-quarter sales actually down one to two per cent, it said in a trading statement covering January and February prior to the close period before its first-quarter results on April 26th.
Unilever shares were 6p down at 576p this afternoon. They have outperformed the FTSE All-Share Index by 25 per cent over last 12 months, and the Dow Jones European food and beverage index by 16 per cent.
Unilever is in the third year of its "Path to Growth" strategy, to boost sales and margins by focusing on its top 400 brands such as Hellmann's mayonnaise, Lipton tea, Magnum ice cream, Close Up toothpaste and Lux soap, and said it was still on track despite slower sales in the early months of 2002.