ANGLO Dutch consumer products group Unilever yesterday reported a three per cent drop in pre-tax profits for 1995 and warned of a continuing low growth environment in Europe this year. "There is little evidence yet of any noticeable improvement in European trading conditions," according to chairman Sir Michael Perry.
Consumer demand in Europe is expected to grow by one per cent this year, with a stronger performance in Britain and the Netherlands than in Germany and France, he said.
Mr Perry said the company would continue to restructure over the next five years at the same level as in the past.
"We are looking all the time for better products and for ways of sharpening prices," he said.
"It is a continuous effort. That is what competition is about. It's the same as its always been, there's been competition in the industry for the last 100 years.
The company said pre-tax profits fell three per cent to £3 billion sterling in 1995.
The benefit from increased sales was offset by a hefty rest restructuring charge and there was a negative impact on net profit from higher interest and tax costs.
The company announced a net restructuring charge of £278 million of which £225 million was taken in the fourth quarter and announced earlier this month.
Uniliver shares fell on the profit slippage and on concern over further provisions. They were down 33p at £12.17p in London and fell seven guilders in Amsterdam to 223.50.
North America, together with European operations, was to blame for the restructuring charge. Sir Michael blamed North America's sluggish performance on the Elizabeth Arden unit. He warned the unit was unlikely to see an improvement this year, "but we should see significant improvement in 1997."
The company said that it expected to improve progress being made in the United States and to benefit from continuing profitable growth elsewhere.
""Mr In Latin America operating profits were steady at £269 million in 1995. Operating profits from North America fell to £438 million in 1995 from £505 million. In Europe profits rose to £1.26 billion from £1.25 billion.
Margins improved in the European foods business and the market decline seen in oil and dairy based foods in recent years slowed and profits rose slightly, led by growth in bakery.
But in detergents, fabrics cleaning volumes declined and prices remained under pressure. Unilever's margins in oil and diary based foods fell to 6 per cent from 7.5 per cent and in ice cream and drinks to 9.9 per cent from 11.3 per cent.
