Unilever has said that 'challenges' in some markets mean that it will likely post lower-than-expected underlying sales growth for the year.
In a trading statement, the group said that it expects growth to come in 'slightly below its guidance of the lower half of its 3-5% multi-year range'.
Market 'Challenges'
It said that 'challenges' in the most recent quarter in some markets, including an economic slowdown in South Asia and 'difficult' trading conditions in West Africa, are likely to weigh on its performance.
In addition, it said that the trading environment in developed markets 'continues to be challenging', noting that while there are signs of an improving performance in North America, 'a full recovery there will take time'.
'Slight Miss'
“Due to challenges in certain markets, we expect a slight miss to our full year underlying sales growth delivery," chief executive Alan Jope said.
“Looking ahead to 2020, growth will be second-half weighted. While we expect improvement in H1 2020 versus this quarter, we expect that first half growth will be below 3%. Our full year underlying sales growth is expected to be in the lower half of the multi-year range."
Jope added that growth remains the business' "top priority", and the company is "confident we have the right strategy and investment in place to step up our performance".
Unilever noted that earnings, margin and cash are not expected to be impacted by the performance.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
