Anglo-Dutch consumer goods giant Unilever reported a 37 per cent rise in 2005 earnings and put the majority of its slow-growing west European frozen-foods business up for sale to speed up overall recovery.
Unilever posted annual earnings per share of €3.88 today, at the high end of analysts' forecasts of €3.17-€3.89 a share and beating a consensus of €3.58.
The world's third largest food group and one of the globe's biggest soap and deodorant makers is in the midst of driving a sales-led recovery by cutting prices and boosted marketing and expects an improved performance in 2006 over 2005.
The group said it had put most of its west European frozen foods business up for sale under the Iglo and Birds Eye brands but would retain its Findus branded business in Italy. Unilever reiterated it would retain all its ice cream operations.
The company started a strategic review last September of its west European frozen foods business with €2 billion in annual turnover.
The businesses to be sold include four processing plants in Britain and Germany and employ around 3,500 people.
Operating profits rose 25 per cent to €5.314 billion for 2005 on overall sales 3 per cent ahead.
Unilever's underlying 2005 sales rose 3.1 per cent, in line with its medium term goal of 2 to 4 per cent and up from virtually flat growth of 0.4 per cent in 2004.
Unilever kicked into recovery mode after its nadir of September 2004, when it gave the first profit warning in its 76-year history as it came under heavy price pressure from US rival Procter & Gamble and failed to respond quickly.