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MONEY & COMPANY:
Unilever says global consumption will remain depressed in first half of year


SUBMIT IMAGE: The business logo design for Unilever is shown on a screen on the flooring of the New York City Stock Exchange (NYSE) in New York, U.S., February 17, 2017. REUTERS/Brendan McDermid/File Picture

January 13, 2021

By Martinne Geller and Siddharth Cavale

LONDON (Reuters) – Durable goods maker Unilever Plc anticipates global consumption patterns to be reduced in the first half of this year, even as company go back to regular in East Asia and markets in Africa and Latin America reveal resiliency, its president informed Reuters.

“We still hold that the first half of this year will be a continued period of suppressed consumption … with that starting to come back in the second half of this year and then next year,” President Alan Jope stated in an interview at the Reuters Next conference on Wednesday.

The maker of Dove soap, Hellmann’s mayo and Tresemme hair shampoo withdrew its yearly sales development target in April and Jope stated he was still cautious of making any forecasts about its future company due to the fluidity of the COVID-19 pandemic.

Nevertheless, he stated the business would grow ahead of the more comprehensive market and he does not anticipate any hits to margins in the near term.

“We would not expect any major setbacks on a margin perspective, but I don’t want to get into a numbers game beyond that until things globally stabilise a little bit,” he stated.

The pandemic has actually improved sales of packaged food for business like Unilever, Nestle and Kraft Heinz, though Unilever was harmed by sharp decreases in foods served in public locations like beaches and dining establishments.

Still, there were indications of development, with Jope stating company was back to regular in East Asia, significantly in Singapore and China, which in spite of increasing cases, Africa and Latin America were revealing strong consumption strength.

Jope likewise stated that the business was continuing to concentrate on the improving of its portfolio, however that financiers must not “hold their breath” on any considerable disposals in its appeal and individual care company.

There might be some clean-up of little brand names in appeal and individual care, however they will have very little effect, he included.

For more protection from the Reuters Next conference please click on this link or www.reuters.com/business/reuters-next

To view Reuters Next live, check out https://www.reutersevents.com/events/next/register.php

(Reporting by Siddharth Cavale and Martinne Geller; Modifying by Bernard Orr and Chizu Nomiyama)

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