Company Spotlight: Unilever

Company Spotlight: Unilever

Unilever Q3 sales up

Consumer products heavyweight Unilever has reported a 4.8% increase in underlying sales to GBP6.7

billion during the third quarter, but said profit margins were hit by an increase in marketing expenditure.

The Anglo-Dutch group's third quarter sales were boosted by its ice cream division and market growth in Europe

and the Americas. Sales of the group's Magnum and Cornetto brands increased following new flavor and

packaging launches.

Unilever's main advertising and promotional expenditure during the quarter was focused on Sunsilk hair

products in the US and Dove Summer Glow tanning lotion and AdeZ soy fruit drinks in the UK.

Operating profit dropped 2% to E1.5 billion (GBP1 million). Net profit was down during the quarter by 45%, while

pre-tax profits dropped 20% to E1.13 billion as a result of the profit from the frozen foods sale in the

corresponding quarter in 2005 and the booking of a E300 million provision relating to preference shares this

year.

"Pricing actions and continued productivity gains fully offset higher than expected input costs. The 'One Unilever'

program is making a substantial contribution to our cost competitiveness drive. Our global capability program,

now also extended to research and development, is progressing well," said Patrick Cescau, Unilever CEO.

Business Description

Unilever Group is a global manufacturer and marketer of consumer goods in the food, personal and home care

product segments. Unilever operates under a dual structure. The two parent companies, Unilever NV and

Unilever PLC, are both public limited companies, registered in the Netherlands and the UK, respectively.

Additionally, Unilever NV, Unilever plc and their group companies constitute a single reporting entity for

presenting consolidated accounts.

Unilever operates through subsidiaries in Germany, Switzerland, France, the UK, the US, and China. It has

operations in over 100 countries worldwide.

The group has three regional teams for managing Unilever's business in the regions, and for