Unilever NV (UN) said its underlying sales grew 3.2% in the third quarter, with the maker of Hellman’s mayonnaise, Persil detergent and Dove soap saying it faced deteriorating trading conditions in a number of countries.
The company posted sales growth of 4.7% in the second quarter of this year. Turnover was “virtually stable” at 13.4 billion euros ($14.8 billion,) marginally below analyst forecasts of 13.5 billion euros. Sales were affected by a negative currency impact of 3.4% .
Underlying sales growth in emerging markets was 5.6% while in developed markets it was flat, Unilever said.
“Consumer demand remained weak and in the markets in which we operate volumes have slowed further and are flat in aggregate,” the company said. “This is particularly the case in Latin America where currency devaluation has pushed up the cost of living of our consumers, squeezing disposable incomes.”
The American depositary shares fell 2.8% on Thursday morning, dragged down by the slowing sales as well as a dispute in the UK with Tesco and other supermarkets about a planned increase to its wholesale prices.