Anglo-Dutch consumer products giant Unilever today reported a rise of just 2 per cent in underlying first-quarter profit today.
Unilever, with food brands such as Knorr and Hellmann's, posted first-quarter net profit before exceptional items and amortisation of €865 million.
But it said earnings and sales of its top 400 brands were below its earlier forecasts.
The world's third-largest food group said first-quarter underlying earnings rose 4 per cent, but sales of its top 400 brands rose only 3 per cent in the first three months of 2003 with food sales, which account for half Unilever's business, flat against last year.
However, the group said it was still set to meet its targets of a low double-digit percentage increase in earnings and top-brand sales growth of 5 to 6 per cent.
In March, Unilever said that based on trading in January and February it expected first-quarter earnings growth of 5 per cent, and sales of its leading brands to rise 4 to 5 per cent.
Unilever chairman Mr Niall FitzGerald said the group had seen a slower-than-expected start to the year in sales due to a number of factors, including a late Easter this year.
The company is entering the fourth year of its five-year programme to boost earnings, sales and profit margins by focusing on its top brands, cutting jobs worldwide and closing factories.