Unilever surpassed its sales expectations despite turnover weakening in emerging markets due to the ongoing coronavirus pandemic.
The FMCG giant reported that turnover was down 1.6% to €25.7bn (£23.4bn) in the first half of the year while underlying sales were down 0.1%, beating the 4.3% drop predicted by analysts.
Underlying profit increased 3.8% year on year, while free cash flow climbed €1.3bn to €2.9bn as Unilever shored up its finances in the midst of the pandemic.
Unilever also said that, while it was exploring the sale of its wider tea division, it would be keeping hold of its operations in India and Indonesia.
Chief executive Alan Jope said: “Performance during the first half has shown the true strength of Unilever. We have demonstrated the resilience of the business – in our portfolio, in a continued step-up in operational excellence, and in our financial position – and we have unlocked new levels of agility in responding to unprecedented fluctuations in demand.
“We have also taken action to strengthen the strategic future of the company by announcing proposals to unify our dual-headed legal structure, progressing the strategic review of our global tea business and making new commitments to help protect the climate and regenerate nature.
“From the start of the Covid-19 crisis, we have been guided by clear priorities in line with our multi-stakeholder business model to protect our people, safeguard supply, respond to new patterns of consumer demand, preserve cash and support our communities.
“Our focus for the rest of 2020 will continue to be volume-led competitive growth, absolute profit and cash delivery as this is the best way to maximise shareholder value.”
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