Unilever raises forecasts after strong quarter

Anglo-Dutch consumer products group Unileverposted a 17 per cent increase in third-quarter net profit today and raised its earnings…

Anglo-Dutch consumer products group Unileverposted a 17 per cent increase in third-quarter net profit today and raised its earnings forecast for the full year.

Unilever said the above forecast sales growth of its 400 top brands which grew at 5.4 per cent in the third quarter would help it to exceed its earnings outlook for the full year.

Unilever's net profit rose 17 per cent to euro1.204 billion in the third quarter, beating analysts forecasts of euro1.135-1.16 billion.

Unilever, the world's number three food group, after Nestleand Kraft is in the third year of its five-year "Path to Growth" strategy.

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Set out in 2000, and revised after its $24.3 billion purchase of Bestfoods, it is aimed at driving underlying annual sales growth to five to six percent and profit margins to above 16 per cent by 2004 by focusing on its top brands.

It has been cutting jobs, selling divisions, closing plants as it has shrunk its brand portfolio to below 900 from 1,600 and expects its top 400 brands to account for 90 per cent of sales this year.