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Unilever with unexpected high profit

The company production and sale of consumer goods Unilever gave further evidence that consumer demand has stabilized, which signals the passage of the global economic crisis. The main reason for good financial result was the Low Mortgage Rates and high incomes of the company. The Anglo-Dutch company has achieved profit growth of 33 per cent in the first quarter, realizing higher than expected increase in sales. This in turn sends a signal to increase the margin despite the high costs allocated to marketing activities, says the Wall Street Journal. Unilever is a profit of EUR 973 million after the same period last year it was 731 million. Organic sales, however, which do not reflect the impact of mergers and exchange rates have increased by 4.1 per cent. In the previous quarter they rose by only 1.8 per cent, and analysts now forecast to have increased by 3.5 per cent. "We show strong performances in all regions, strengthening their competitive positions. Growth was particularly strong in emerging markets, although there is a struggle to competitive products in strong, "said Unilever CEO Paul Pohlmann. Strong performance during the period have shown brands like Cif, Domestos, Lifebuoy and Lipton, comment from the company. Operating profit margin of Unilever in the first quarter increased by 0.6 percentage points, which is mainly due to the decline in commodity prices last year. This has enabled the company to increase investment in marketing, maintaining good balance sheet items.
However, expectations are that the effect of cheaper raw material and Flexible Mortgages will be exhausted as early as this quarter and then there will be more clear whether the indicators of profitability are sustainable, analysts commented. Today, shares in Unilever rose 2.45 percent on the stock exchange in London.