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Unilever PLC reported Thursday a fall in net profit for 2019 as sales missed its growth target, and said it would consider options for the future of its global tea business.
The multi-sector retailer ULVR, -1.39% UL, -2.14% which owns consumer brands such as Ben & Jerry’s ice cream and Dove soap, reported a 38% fall in net profit to 6.03 billion euros ($6.64 billion). The consensus forecast was EUR5.84 billion, taken from FactSet and based on seven analysts’ projections.
Turnover was up 2% to EUR51.98 billion, driven by a solid Asian market, which remained the company’s largest by region. Unilever said that the impact of the coronavirus outbreak in China is unknown at this time.
Turnover forecast was EUR52.85 billion, taken from FactSet and based on 11 analysts’ estimates. On an underlying basis sales rose 2.9% compared with recent guidance for the lower half of its 3% to 5% multi-year target. Unilever blamed missing this range on a weak fourth quarter.
For the year ahead the company reiterated that it will miss the same underlying sales target in the first half of 2020. However it expects sales to be second-half weighted and to be at the bottom end of the range for the year.
Chief Executive Alan Joppe said that the company is beginning a strategic review of its global tea business, which includes brands such as Lipton and PG Tips. The company said it will consider all options and conclude the review by the middle of 2020.
The board has declared a dividend of 41.04 European cents for the fourth quarter, up from 38.72 cents for the same period in 2018.
