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The company, which produces Magnum ice cream, Domestos household cleaner and Lipton tea, among other things, said sales rose 0.2% to 12.4 billion euros ($ 13.3 billion) compared to the same period last year.
People wearing protective masks walk out of a supermarket with carts full of shopping in Milan on March 8, 2020, as Italy quarantines more than 10 million people in the financial capital of Milan and the tourist mecca of Venice for almost one month to stop the spread of the new coronavirus, COVID -19. Image: AFP
THE HAGUE, The Netherlands – Anglo-Dutch consumer giant Unilever reported a slight increase in first-quarter sales on Thursday and said the coronavirus has caused sales of hygiene products to soar while those of ice cream melted.
The company, which produces Magnum ice cream, Domestos household cleaner and Lipton tea, among other things, said sales rose 0.2% to 12.4 billion euros ($ 13.3 billion) compared to the same period last year.
However, Unilever withdrew its outlook for the year and its shares fell sharply in Amsterdam.
“COVID-19 disease is having an unprecedented impact on people and economies around the world,” Chief Executive Alan Jope said in a statement before adding: “Demand patterns are changing.”
The global crisis caused “increases in sales of hygiene and food products in the home, combined with some domestic stocks and almost the cessation of consumption outside the home, which is particularly affecting our food service and ice cream business”, said.
London and Rotterdam-based Unilever said sales of skin cleansing products rose steadily as health authorities stressed the importance of hand washing.
Demand for household cleaning products such as Cif bleach and Domestos was also strong, as was what the company calls “household food products” such as Hellman’s mayonnaise.
But as travel restrictions and blockades put a brake on leisure and tourism activities, Unilever saw sales drop elsewhere, particularly for Magnum products.
In Europe, Turkey and Latin America, sales “were strongly affected by the closure measures and the reluctance of distributors to commit to buying ice cream stocks with an uncertain holiday and tourism season,” said Unilever.
One of the world’s largest producers of consumer goods, the group said it maintained a constant supply of products.
“We are keeping our factories running through the many unpredictable challenges in local operating environments,” said Jope.
Unilever kept its quarterly dividend payment at 0.41 euros per share, but withdrew its outlook for the rest of the year.
“The unknown severity and duration of the pandemic, as well as the containment measures that can be adopted in each country, means that we cannot reliably assess the impact on our markets and our businesses,” said Jope.
Investors bounced back with negative sentiment, with Unilever’s stock price dropping nearly 5.0% mid-morning on the Amsterdam stock exchange, while the AEX index declined just 0.64%.
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