) posted healthy third quarter 2012 sales results. The company
recorded organic (excluding the impact of acquisitions and
disposals) sales growth of 5.9% in the third quarter. The
increase was driven by both volume and pricing gains of 3.4% and
2.4%, respectively. Increased investment in innovation and brand
building also contributed to the growth.
Emerging markets underlying sales expanded 12.1%, while
developed markets declined in the quarter.
The segment delivered underlying sales growth of 8.0% in the
third quarter, driven by volume gains of 5.6% and improved
pricing of 2.3%.
The Hair section was positively driven by the rollout of its
brands in new markets. Tresemmé hair product was a success in
Brazil and was also launched in Indonesia and India. The launch
of Clear grew across the markets in United States. Axe hair
growth was positive in Europe and was rolled out across Turkey.
Dove Damage Therapy continued to boost sales in many markets in
Deodorants performed well driven by Dove's healthy
performance, and Axe's aggressive advertising campaigns. Growth
in the Oral division was driven by the new innovations in
toothpaste category. Pepsodent 123 was launched in Indonesia and
Vietnam, while Pepsodent was launched in South Africa.
The segment delivered underlying sales growth of 11.0% in the
quarter, riding on volume growth of 7.0% and price increase of
The segment's laundry division benefited from the launch of
Comfort Anti-Bacterial in the Indonesia and Vietnam and the
rollout of New Omo stain removal. Strong performance of Sunlight
dish wash boosted sales in the Household care division.
The segment's underlying sales declined 0.4% in the quarter due
to 1.4% volume decline, partially offset by a 1.0% positive
impact due to pricing.
The segment suffered as the spreads volumes declined due to
high pricing in key markets of 2012. However, liquid margarine
continued to boost sales in Europe. Hellmann's brand delivered a
strong performance in Brazil, driven by several promotional
campaigns of the company. Knorr baking bags also gained momentum
in most key countries.
The segment delivered underlying sales growth of 6.8% in the
quarter, owing to volume growth of 3.3% and pricing increase of
The category was driven by growth in ice cream, which was
driven by the launch of Magnum Infinity across Europe, Turkey,
Mexico and Australia, and with the recent launch of Magnum in the
Philippines and Malaysia. Beverages category improved in the
quarter, with Lipton tea delivering double-digit growth in the
Middle East and the re-launch of Lipton Yellow Label in
We expect an uncertain macro-economic environment, going
forward. Though the company forecasts volume gains and strong
free cash flow in the near-term, commodity cost inflation will
continue to be a headwind.
UNILEVER N V (UN): Free Stock Analysis Report
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