Thursday, UK-based consumer products manufacturer Unilever Plc (ULVR.L,UL) reported a 19% fall in its second-quarter profit, impacted by higher restructuring charges and the strength of the euro. Quarterly turnover declined 1% on lower sales in Americas despite growth in Europe and 'Asia Africa'. Further, the company confirmed its fiscal 2008 growth target. Unilever shares are currently down around 7% on the London Stock Exchange.
Second-quarter net profit fell to 978 million euros from 1.21 billion euros last year. Net profit attributable to share holders declined 21% to 909 million euros from 1.14 billion euros a year ago. On a per share basis, earnings declined 19% to 0.31 euros from 0.38 euros in the previous year.
The company attributed the lower profit to higher restructuring costs, the low tax rate last year and the stronger euro.
Profit before-tax in the quarter was 1.35 billion euros, down 4% from 1.41 billion euros a year ago.
The company's quarterly turnover declined 1% to 10.37 billion euros from last year's 10.53 billion euros, impacted by the strong Euro against most currencies together with a small net impact of acquisitions and disposals. On a constant rate basis, turnover grew 6%, and underlying sales growth was 6.8%. Prices increased 7.4% in the second quarter.
Among regions, European sales grew 2.3%, helped by higher pricing despite the 2.9% decline in volumes largely reflecting weaker ice cream sales and the expected reversal of additional sales at the end of the first quarter ahead of price increases and systems implementations. In the Americas, turnover fell 5.8%.
Further, Unilever confirmed its fiscal 2008 outlook for delivering growth ahead of its 3%-5% target range, with an underlying improvement in operating margin.
UL closed Wednesday's regular trading session at $30.12, up $0.27, on a volume of 775 thousand shares.
ULVR.L is currently trading at 1,406 pence on the LSE, down 104 pence or 6.89%, on a volume of 4 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.