Rainy spring weather hits Unilever ice-cream sales

?The poor weather in spring and early summer has hit ice-cream sales at consumer goods giant Unilever.
Unilever makes Ben & Jerry's ice-creamUnilever makes Ben & Jerry's ice-cream
Unilever makes Ben & Jerry's ice-cream

?The firm said the hit meant sales in Europe fell, although there was strong growth in other regions leading to ?a 3.2 per cent rise in ?revenues to £23.3?bn with pre-tax profits up 0.6? per cent? to £4.4?bn in the six months to June 30.Unilever's best-performing category was home care, where underlying sales grew 7.4? per cent?, with strong sales of Persil and Surf.?However, the company struggled in its food and drinks division with ?weak ?sales of tea leading to a rise in revenues of ?just ?1.3? per cent?.The company said: "Growth in our markets was mixed.

?"?Market growth in Europe and North America was held back by the impact of weather on ice?-?cream sales. In the emerging markets we continued to see good momentum particularly in China and South East Asia."

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Steve Clayton, manager of the HL Select funds which holds a position in Unilever, said: “Unilever themselves describe their markets as mixed, and most investors will look at these numbers as something of a curate’s egg. Home Care produced an excellent result, with both sales and margins strongly ahead. But the foods business, which is strongly geared to the ice-cream sector, suffered from the weather. Ironic, given current forecasts of record-breaking summer heat.

"Unilever remains a great business, and we believe it’s capable of regular growth for years to come. But 2019 is not going to be one of its faster growing years. Underlying progress is steady enough though, with margins advancing to push earnings ahead a little faster than sales.

"We hold this business for the long term, because its track record of generating value for shareholders is phenomenal. Their portfolio is stronger following the divestment of the low-growth spreads business last year, and when market conditions improve we expect to see the business performance tick better."

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