Unilever’s Growth Held Back by Weakness in Ice Cream and Tea

(Bloomberg) --

Unilever’s growth fell just short of estimates last quarter on disappointing sales of ice cream in Europe and black tea across the developed world.

• The 2.9% third-quarter gain in underlying sales growth at the owner of Lipton tea and Ben & Jerry’s ice cream compared with a 3% consensus analyst forecast.

Key Insights

• Europe was the only region where underlying sales growth stalled. The continent struggled against tough comparisons after hot weather in 2018 boosted ice cream sales.
• In the third quarter, Unilever’s sales fell by 0.1% in developed markets, highlighting the challenge the world’s biggest brands face as shoppers increasingly favor locally made labels with more artisanal cachet.
• Unilever’s growth over nine months lagged slightly behind the performance of rival Nestle SA, which also reported results on Thursday.

Market Reaction

• The shares gained 1.3% early Thursday in Amsterdam. They’re up about 15% so far this year.

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• For more on Unilever’s numbers, click here.
• Click here to see the statement.

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