Atkins diet slims Unilever profits
CONSUMER goods giant Unilever today delivered the bad news investors had feared as it unveiled a sharp slide in profits and sales for the first half of the year.
The Anglo-Dutch group, whose brands range from Magnum ice cream to Knorr soup, said sales of its leading brands grew only 3.1% in the six months to June.
Unilever pinned much of the blame on the growing popularity of the Atkins diet, which had hit sales of its Slim-Fast diet range.
The group's original growth target for the 2003 full year was 5%-6%. However, Unilever had cautioned analysts to expect lower growth, with its June trading statement cutting forecasts on its top brands to 4%.
Chairman Niall FitzGerald today again blamed poor US sales of Slim-Fast and for its HPC division, but pledged: 'Both are being addressed and will improve.'
Pre-tax profits for the half-year fell to e2.13bn (£1.49bn) from e2.3bn a year earlier, on sales of e23.49bn against e24.1bn.
Profits fell 26% in the second quarter against a year ago, mainly due to disposals through Unilever's so-called Path to Growth programme, which involves the sale of hundreds of minor brands.
Turnover in the crucial North American market was 9% lower than last year, once again affected by several disposals. But even stripping those out, the poor performance of Slim-Fast and fragrances meant the sales trend was negative.
