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Unilever (UN) Q3 Organic Revenue Grows on Higher Pricing

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Unilever N.V. (UN - Free Report) is a British-Dutch multinational corporation and its shares listed on the NYSE are known as New York Shares. This fast-moving consumer giant commands market-leading positions in savory, dressings, tea, ice cream, deodorants and mass skin care product categories, and its products are sold in more than 180 countries.

Unilever has been delivering weak results since the past few quarters due to continued slowdown in the emerging markets, which account for about two-thirds of the company’s total revenues. Though emerging markets offer strong long-term growth prospects, they are generally volatile. Of late, the company has witnessed some improvement in India and more stable conditions in China. However, the company is still struggling with adverse economic conditions in Brazil and Russia. Among the developed markets, the company is witnessing improvement in North America as the impact of the economic recovery is being felt by consumers. However, the company continues to expect sluggishness in Europe. Due to this, investors are eagerly awaiting Unilever’s earnings report.

Currently, UN has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank stocks here. However, the Zacks Rank could definitely change following Unilever’s third quarter 2016 quarterly report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Revenue: UN’s revenues declined 0.1% (in local currency) in third quarter 2016, due to unfavorable currency and deterioration of economic conditions in markets such as Brazil and Argentina. However, it increased 3.4% in constant currency ratesas the company offset volume declines with higher prices.

Key Stats to Note: Organic sales growth in the quarter went up 3.2%, lower from 4.7% growth in the preceding quarter. Emerging markets witnessed growth of 5.6%, while developed markets were flat.

Stock Price: Shares declined 1.99% in the pre-market trading.

Check back later for our full write up on this UN earnings report later!

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