Unilever has issued a sales warning due to difficult market conditions. The washing and food company is suffering from, among other things, an economic slowdown in South Asia. The situation in West Africa also leaves something to be desired, according to the company. There are now signs of improvement in North America, but full recovery takes time.
CEO Alan Jope speaks of a “slight error” in underlying revenue growth. Unilever had previously set itself the goal of increasing its underlying revenue by 3 to 5 percent on an annual basis. Now the company believes it will no longer be able to achieve this in 2019 and will be slightly below that bandwidth. The profit, margin and cash flow are unlikely to be affected.
Unilever expects revenue growth to pick up again next year, but in the first half of 2020, growth is also likely to be lower than 3 percent. Throughout 2020, underlying revenue growth is likely to be between 3 and 4 percent. “Growth remains our top priority and we are convinced that we have the right strategy and investments to improve our performance,” Jope emphasizes in a statement.
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