Unilever Q3 earnings rise 37%, sales gain 1.2%

AMSTERDAM: Unilever, the maker of consumer products such as Lipton teas, Dove soaps and Ben & Jerry’s ice cream, said earnings jumped 37% in the third quarter on modest growth and lesser financing costs than a year ago. Net profit at the Anglo-Dutch company was E1.01 billion, up from E737 million while sales rose 1.2% to E10.2 billion.

A year ago, Unilever took a E300-million charge after converting preference shares issued in 1999 to ordinary shares. The company said that sales were impacted by the weak dollar and disposals of noncore brands, masking stronger underlying growth of 4.5%.

Analysts said the results were another step toward recovery at Unilever, which has lagged behind competitor Procter & Gamble Co. in performance in recent years. “Savory, dressings, spreads and home care performed particularly well in the third quarter,” said Unilever, which also makes Knorr soups, Wishbone dressings and Hellmann’s mayonnaise.

The company said that inflation was pushing its purchasing prices up, but so far that hasn’t hurt margins: the company cut costs and passed prices rises on to consumers by raising selling prices. “We have seen a third consecutive quarter of underlying improvement in operating margins, despite a significantly tougher cost environment,” said chief executive Patrick Cescau.