Unilever lifted by advertising campaign

Consumer goods giant Unilever said sales volumes jumped 5 per cent after an advertising drive and new products boosted trading at the end of 2009.

Lower prices also helped lift demand after the Dove-to-Knorr group said underlying prices fell 3.1 per cent in the quarter to December 31 due to lower commodity costs.

Despite some of the toughest conditions ever faced by the firm, Unilever said all regions delivered an improved trend in volumes and market share.

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Across the year, sales grew by 3.5 per cent after a 2.3 per cent improvement in sales volumes.

Unilever – home to a host of household staples such as Flora spread and Domestos detergent – boosted its expenditure on advertising and promotional activity in the period, while it also launched products such as a new range of Lipton teas and Surf detergent in the UK.

Chief executive Paul Polman said: "Our brands are stronger, driven by better quality innovation and a step-change in advertising and promotional expenditure."

He added that the company expected continued pressure on consumer spending and heightened levels of competition in 2010.

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"We will continue to focus on volume growth as the main driver of long-term value creation," Mr Polman added.

The company said net profits excluding restructuring initiatives were 6 per cent lower at 4.01 billion euros (3.5bn) in 2009.