Unilever (LON:ULVR) has today announced that it expects underlying sales growth for 2019 to be slightly below its guidance of the lower half of its 3-5% multi-year range.
This is a result of challenges in the quarter in some markets, including the economic slowdown in South Asia, one of Unilever’s largest markets, and trading conditions in West Africa remaining difficult. The trading environment in developed markets continues to be challenging and while there are early signs of improving performance in North America, a full recovery there will take time.
Earnings, margin and cash are not expected to be impacted.
Alan Jope, Unilever Chief Executive Officer: “Due to challenges in certain markets, we expect a slight miss to our full year underlying sales growth delivery.
“Looking ahead to 2020, growth will be second-half weighted. While we expect improvement in H1 2020 versus this quarter, we expect that first half growth will be below 3%. Our full year underlying sales growth is expected to be in the lower half of the multi-year range.
“Growth remains our top priority and we are confident we have the right strategy and investment in place to step up our performance.”