Unilever’s Profit Dips in Second Quarter

Anglo-Dutch multinational Unilever reported flat sales of leading brands and lower second-quarter operating profit. Sales of the top 400 brands, which Unilever previously indicated could in 2004 gain by more than the 2.5% of last year, were seen improving in the second half of the year.

Unilever said operating profit before exceptional items and amortization of goodwill and intangible assets slipped 2% to $1.96 billion. Unilever posted an 11% rise in its earnings per share in the second quarter.

Unilever, whose sales are under pressure from weak consumer markets, said in a statement there was a further slowdown in the second quarter and that it had suffered from poor ice cream and ready-to-drink tea sales in Europe due largely to a cooler start to summer.

In February, Unilever abandoned a five-year target of hitting 5-6% sales growth from its leading brands, to focus more on improving shareholder value through greater focus on share buybacks and cash generation.