Unilever’s personal and home care arms continue to outpace its food divisions

Unilever, the consumer goods group, said it was facing a tougher trading environment in Russia and Brazil as it posted a €6.25bn pre-tax profit for 2011.

The group’s emerging markets operations saw underlying year-on-year sales growth slip from 13 per cent in the third quarter of the year to 12.3 per cent in the fourth quarter, making the annual growth rate 11.5 per cent in these territories.

“Our overall performance was driven by our growth in emerging markets and the home care and personal care catagories,” said CEO Paul Polman. 

“We invested heavily in our brands and exit the year with positive momentum. In foods, while price increases have impacted volumes, we have grown in line with our markets and gained share in many of our key businesses.”

In the fourth quarter, underlying sales growth was 6.6 per cent, overwhelmingly as a result of price increases rather than volume growth.

Unilever’s personal care and home care arms – whose brands include Axe deodorant and Domestos bleach – continued to outpace its food divisions, which make Flora margarine, Lipton tea and Knorr soup.

Full-year operating profit rose one per cent to €6.43bn, while pre-tax profit rose 2 per cent to €6.25bn.