UK/NETHERLANDS: Unilever sales beat analyst estimates from ice cream boost | Progresiv

Unilever boosted its full-year sales forecast after reporting third-quarter sales growth that beat estimates on improved results in emerging markets and stronger sales of Magnum and Ben & Jerry’s ice cream.

Underlying revenue increased 5.7 percent, London and Rotterdam-based Unilever said, the best growth in almost three years and well above the 4 percent analyst estimate. It now expects full-year sales “towards the upper end” of a 2 percent to 4 percent range, compared with a previous estimate slightly ahead of the 2.9 percent growth achieved in the first six months. The shares rose as much as 5.1 percent in London.

Chief Executive Officer Paul Polman said consumer demand was “fragile” as currency depreciations in emerging markets push up prices for its shampoos and soups. He’s responded by creating new variants of the company’s products, such as Ben & Jerry’s Cookie Core ice cream and Marc de Champagne-flavored Magnums. He’s also adding expensive skincare brands to the company’s so-called prestige division to offset the pressure from bargain-hunting European consumers.

Sales in the unit that includes ice cream rose 8.5 percent, almost triple the growth seen in the second quarter thanks to Europe’s record summer heat. Emerging-market revenue - which comprises 58 percent of Unilever’s business - rose 8.4 percent in the third quarter, up from 6.5 percent in the previous period, fueled by a rebound in China, higher prices for its goods across Latin America, and improvements in Russia. (www.bloomberg.com)