Food giant Unilever posts 5% drop in 2015 profit

The Hague

DUTCH food and cosmetics giant Unilever on Tuesday posted a 5 per cent fall in 2015 profit from the previous 12 months, saying it had been a "challenging year" amid the economic slowdown.

Turnover was up 10 per cent to US$53.3 billion, thanks to increased volumes and a favourable exchange rate, but net profit attributable to shareholders was down to US$4.91 billion, compared with US$5.2 billion in 2014.

"We are preparing ourselves for tougher market conditions and high volatility in 2016, as world events in recent weeks have highlighted," chief executive Paul Polman said in a statement.

He noted that 2015 had been "a challenging year with slower global economic growth, intensifying geopolitical instability, and high currency and commodity volatility" for the Rotterdam-based group.

The stock market took the news in its stride with Unilever shares on the Amsterdam AEX exchange up some 3 per cent in early trade at 38.6 euros.

Consumer demand for the group's products - which include such brand names as Knorr soup, Dove beauty care products, Hellmann's mayonnaise and Lipton tea - remained "fragile", the company said in a statement. AFP