New Delhi, Oct. 1 (PTI): Anglo-Dutch FMCG firm Unilever has warned of slowdown in sales by up to 3.5 per cent in the July-September quarter of this fiscal because of growth tapering off in the emerging markets, including India.
“Unilever has seen weakening in the market growth of many emerging countries in quarter three and now expects underlying sales growth of 3-to 3.5 per cent in the quarter,” the company said.
During the April-June quarter, Unilever reported a sales growth of 5 per cent, led by the growth in emerging markets where sales went up 10.3 per cent.
Explaining the reason for the growth slowing down in the emerging markets, Unilever said, “The emerging market slowdown has accelerated as a result of significant currency weakening. Developed markets remain flat to down.”
However, the company said despite slower market growth in many emerging countries, it was on track to meet its 2013 priorities.
On the growth outlook, Unilever CEO Paul Polman said, “For 2013, we are still on course to deliver against our priorities of profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow.”
“We continue to grow ahead of our markets and expect underlying sales growth to improve in quarter four.”
In April-June, Unilever’s Indian arm Hindustan Unilever (HUL) posted a 6.99 per cent growth in net sales at Rs 6,687.49 crore against Rs 6,250.15 crore a year ago.
HUL’s standalone net profit fell 23.43 per cent to Rs 1,019.25 crore on account of an exceptional income generated in the same quarter last year from the sale of properties.