Select Page

Unilever Shares Plunge After Sales Growth Forecast Lowered

Unilever Shares Plunge After Sales Growth Forecast Lowered

Unilever NV shares trading on the Euronext Amsterdam have plunged 6% Tuesday morning following a warning from the company that it will miss full-year revenue growth targets, reported the Financial Times.

Unilever is a British-Dutch transnational consumer goods company, and one of the largest in the world, its products include food and beverages, cleaning agents, beauty products, and personal care products. Some of its most popular brands include Axe, Dove, Lipton, Pure Leaf, Magnum, Heartbrand ice creams, Rexona/Degree, Sunsilk, and Surf. 

Unilever is a bellwether company for the global consumer, given the range of consumer staple products and geographical spread, has warned sales growth for 2019 will miss the 3-5% target, expected to come in below the lower end of the range (sub 3%). 

The company is also forecasting another stagnate year for the consumer. Its growth is expected to print below 3% for 1H20 with full-year growth sub 3%.  

“Due to challenges in certain markets, we expect a slight miss to our full-year underlying sales growth delivery. Growth remains our top priority and we are confident we have the right strategy and investment in place to step up our performance,” said Unilever’s chief executive Alan Jope. 

Jope blamed a global synchronized slowdown that has deteriorated South Asian markets. He called the North American market “challenging.”   

Stagnating consumers in developed economies have pressured sales in the last several quarters, where consumers are cutting back on spending as their respected economies decelerate.

The latest quarterly sales show developed markets fell 0.1%, with a 5.1% increase in emerging markets.

RBC analyst James Edwardes Jones said “Unilever is squarely blaming its markets . . . we think there’s more to it than that.”

Given the company’s consumer staple products and geographical reach, especially against the backdrop of a global slowdown, perhaps the weakness that has triggered a manufacturing recession across the world has finally transmitted weakness into consumers. If so, then this means the global downturn could be broadening. 


Tyler Durden

Tue, 12/17/2019 – 05:42


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub

 

Support Our Work

Support the Libertarian Hub by tipping with Bitcoin!

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!