Unilever posts profit for Q3, to sell frozen foods business

Unilever posts profit for Q3, to sell frozen foods business

	Published : Thu, 09 Feb 2006 20:10 By : Richard Owen Print this Story

AMSTERDAM: Anglo-Dutch consumer goods major Unilever posted a net profit of 684 million euros in the fourth quarter of it fiscal.

The company said it is intending to sell its European frozen foods business, including the Igloo and Birds Eye brands. The business generates annual sales of about 2 billion euros and has some 3,500 people on its rolls.

The company had incurred a loss of 144 million euros in the past 12 month period as it took a 791-million-euro impairment on the value of its diet products unit Slim Fast.

The company reported its sales increased 3 per cent to 10.1 billion euros, from 9.75 billion euros a year earlier.

The full year earnings of 3.77 billion euros, however, were short of market expectation of 3.85 billion euros.

Chief executive officer Patrick Cescau said in a statement the company witnessed strong growth in its personal care products in developing and emerging markets.

"The recovery is underway. We've delivered the best (sales) growth rate for three years, seen increased momentum throughout the year and end 2005 in better shape than we started it," he said.

He said much remained to be done with regard to the company's ailing European business in order to bring it to competitiveness and growth. This is a priority for 2006, he added.

Regarding the sale of the frozen foods business, Cescau said it had found growth elusive, with underlying sales down 4.5 per cent in 2005.

Market watchers expect the business to bring the company around 1.4 billion euros.

The company said its sales growth during the quarter had been on account of higher volumes and not increased prices.

The company has in recent years reduced its number of brands by around 75 per cent to 400. It had sold its perfume business to Coty Inc. for $800 million and had handed over some of its financial functions to IBM to help save money.

Unilever traditionally has two headquarters at Rotterdam and London since 1930, and two holding companies that are listed in London and Amsterdam. It used to have two CEOs, but the practice was discontinued in early 2005. It is now completing a review to consolidate its activities at one headquarters.

Unilever plans to buy back shares worth 500 million euros this year. The company's shares rose 1 per cent to 59.05 euros in Amsterdam trading.