Problems In Emerging Markets Stifle Unilever’s Financial Performance

Unilever said weak performance in emerging markets adversely affected fourth quarter sales, which were lower than expected by analysts. Underlying sales rose 2.1 percent, though analysts were expecting a 2.6 percent increase. Unilever’s decision to destock its products from Chinese store shelves as a reaction to the slower economy there led to a 20 percent slide in sales. Full year sales growth also came in slightly below expectations at 2.9 percent. The company blamed problems in emerging markets – 60 percent of Unilever’s sales – for the tepid financial performance. Besides the slower Chinese economy, problems included weakening currencies, sanctions on Russia, and fierce price competition among European retailers.