Streamlined Unilever aims for growth

Anglo-Dutch giant Unilever Plc/NV swept away its dual-management structure on Thursday and said its number one priority was to restore top-line sales growth after largely flat 2004 profits.

The food and consumer goods group plans to end its 75-year history of two chairmen and two boards making Dutch co-chairman Antony Burgmans non-executive chairman while Frenchman Patrick Cescau, the UK co-chairman, becomes group chief executive.

The Lux soap, Lipton tea and Knorr soups group reported 2004 net profits before exceptional items and amortisation of goodwill and intangibles (beia) rose 1 percent to 3.97 billion ($7.34 billion), which represented a 4 per cent rise when taken at constant exchanges rates.

The group said it would focus on improving total shareholder returns, while it expected an improvement on its return on invested capital.

Unilever has suffered nearly two years of sluggish sales and earnings growth which culminated in September in a profit warning indicating underlying earnings would grow less than 5 per cent on a constant currency basis.

The results showed 2004 underlying earnings per Unilever NV share grew at 5 per cent to 4.22 at constant currency, but just 2 per cent when taken at current currency.

Unilever Plc shares have underperformed the FTSE-100 index by nearly 15 per cent over the last 12 months.

- REUTERS