Consumer goods giant Unilever Plc (ULVR.L, UL, UN) said its third-quarter profit fell 36%, but underlying sales grew 3.4%, as higher volume offset falling prices.
The London-based company's net profit attributable to shareholders' equity was 1.05 billion euros or 0.36 euros per share, compared to 1.364 billion euros or 0.57 euros per share last year. Earnings per share before restructuring, disposals and other items, or RDIs, was EUR 0.43 for the latest quarter.
Profit before tax was 1.42 billion euros, down from 2.50 billion euros in the earlier year.
Operating profit fell 41% to EUR 1.49 billion from EUR 2.52 billion in the corressponding quarter last year. Operating margin before RDIs was up by 70 basis points in the recent quarter.
Turnover for the quarter decreased to 10.2 billion euros from 10.43 billion euros last year. Excluding the effects of acquisitions and disposals, underlying sales were up 3.4%, with 3.6% volume growth.
Savoury, dressings & spreads reported a third-quarter turnover of EUR 3.239 billion, while Ice Cream & Beverages generated EUR 2.18 billion. Personal Care segment had a quarterly turnover of EUR 3.03 billion and Home Care & Other reported EUR 1.751 billion for the third quarter of 2009.
Region-wise, Asia Africa CEE contributed EUR 3.807 billion to total quarterly turnover, while Americas contributed EUR 3.218 billion. Turnover from Western Europe was EUR 3.176 billion. Volume improved in all regions.
In its sequentially preceding second-quarter, the company posted net profit attributable to shareholders' equity of EUR 758 million or EUR 0.27 per share, lower than EUR 909 million or EUR 0.31 per share reported last year. Turnover for the quarter grew 1% to EUR 10.458 billion from EUR 10.374 billion in the same period last year.
For the nine-month period, net profit attributable to shareholders' equity was EUR 2.54 billion or EUR 0.88 per share, versus EUR 3.89 billion or EUR 1.34 per share a year ago. Year-to-date, turnover edged down 1% to EUR 30.16 billlion from EUR 30.37 billion in the comparable period.
Cash flow from operating activities for the nine-month period rose to 4.77 billion euros from 3.21 billion euros in the prior year period. Net debt as at September 30, 2009 was 6.92 billion euros, compared to 8.68 billion euros as at September 30, 2008.
Paul Polman, chief executive officer said, "We have seen further good progress across all regions and the majority of countries and categories. Our market shares are responding to stronger innovations, greater consumer value, increased marketing support and better execution."
"Market conditions remain challenging and in this environment we will continue to increase investment behind our brands and build long-term capabilities in research and development. We are on track towards our objective of restoring volume growth while protecting margins and cash flow for the year as a whole," added Polman.
Among others in the industry, Procter & Gamble Co. (PG), last week, reported a slight decline in first-quarter profit to $3.31 billion from $3.35 billion last year, reflecting weak sales, besides negative foreign currency impacts and higher base period divestiture gains on minor brands. On a per share basis, earnings rose 3% to $1.06 from $1.03 in the same quarter of last year. Quarterly net sales declined 6% to $19.8 billion from the previous year's net sales of $20.9 billion.
The world's second largest food company, Kraft Foods Inc. (KFT) reported net income for the third quarter of $824 million or $0.55 per share, compared to $1.4 billion or $0.91 per share for the year-ago quarter. Net revenue for the quarter fell 5.7% to $9.80 million from $10.40 million in the same quarter last year.
ULVR.L is currently trading at 1,774 pence, down 55 pence or 3.01%.
UL closed Wednesday's regular trading at US$30.22 on the NYSE, while UN ended at $30.76.
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