(Source: Daily Mail)

By Rupert Steiner, Daily Mail, London
Nov. 6--Nine months into the job and the boss of Unilever has posted a
second consecutive quarter of growth and made significant inroads in turning
the consumer goods giant around.
Chief executive Paul Polman said a combination of spending more on
marketing and cutting some prices, helped the firm beat volume growth
forecasts. The maker of Domestos and Magnum's ice cream posted a 3.6pc rise in
quarterly volumes, ahead of analysts' 2.8pc forecasts. The firm, which also
owns Marmite, has embarked on a stream of advertising and launched a new range
of Lipton teas and Surf washing power in Britain.
Polman made increasing volume growth -- rather than growing profit
margins -- his mantra on joining the firm at the beginning of the year.
Unilever had suffered three quarters of falling sales volumes in Europe before
he arrived.
But by slashing costs across the business he has also ensured profits are
resilient. Operating profit margins for the quarter increased from 16.1pc to
16.8pc. Much of the good news had already been built into the share price
which dipped 35p to 1788p.
In a whirlwind nine months Polman, who came from rival Nestle, cleared
out almost half his senior team.
He removed 40 of his top 100 managers, scrapped earnings forecasts and
has come out with some unusual catchphrases.
At the half year he said "the markets are not easy-peasey Japanesy at the
moment."
Analysts called the update "exceptionally strong" with one, Keith Bowman,
at Hargreaves Lansdown, saying the group was "inching closer" to its arch
rival Reckitt Benckiser.
He said: "Sales have again surprised on the upside, whilst the profit
margin has also improved. Like Reckitt, an emphasis on innovation and
sustained advertising spend is driving performance, with cost-saving
initiatives providing additional momentum."
The boss of the world's third biggest food and consumer goods group
warned that with world unemployment still rising and consumer confidence low,
the outlook remains tough.
"Market conditions remain challenging," he said. "And in this environment
we will continue to increase investment behind our brands and focus on
research and development."
Ice cream was a star performer over the past three months and Unilever
benefited from growth in emerging markets.
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