Unilever’s weakness in emerging markets is a strategic hazard. The company, in common with peers, had already acknowledged headwinds from developing markets. In an unscheduled after-hours update on Sept. 30, the Anglo-Dutch consumer products company put firm numbers on its problem.
Unilever said it expects to report revenue growth of 3 to 3.5 per cent for the three months to the end of September. Analysts were expecting 4.5 to 5 per cent from the maker of Dove soap and Knorr stock cubes. Brazil, India and Indonesia are proving especially tricky. Currency swings are hurting too. Cue corrective nudge in the stock market.