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AFP
Published
Feb 4, 2010
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Unilever says profit falls, sees tough competion ahead

By
AFP
Published
Feb 4, 2010

THE HAGUE, Feb 4, 2010 (AFP) - Anglo-Dutch food and cosmetics giant Unilever reported a 24 percent fall in fourth quarter net profit Thursday 4 February and predicted tough competition and consumer spending constraints in the current year.

Unilever
Photo: AFP/File/Eric Feferberg

The company said net earnings in the final three months of 2009 came to 906 million euros (1.27 billion dollars) as lower prices offset increased volumes.

Sales were down 4.8 percent from a year earlier to 9.66 billion euros, falling short of analyst forecasts for 9.87 billion euros.

Operating profit tumbled 33 percent to 972 million euros although the same year-earlier period included exceptional gains of 611 million euros.

For all of 2009, net profit was down 31 percent to 3.66 billion euros on sales of 39.82 billion euros, down 1.7 percent.

Chief executive Paul Polman said the company "made good progress in challenging market conditions. Our market share improvements were broad-based and improved throughout the year.

"We have further strengthened our leading positions in developing and emerging markets and made encouraging progress in re-establishing volume growth in Western Europe," Polman said.

"We expect continued pressure on consumer spending power and heightened levels of competitive activity in 2010."

Unilever shares were down 0.38 percent to 22.10 euros in early trade on the Amsterdam stock exchange.

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