Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 33 n° 335

Expert comment on Unilever’s annual results

Posted by fidest press agency su mercoledì, 20 gennaio 2016

Martin Kunc, of Warwick Business School, an Associate Professor of Operational Research and Management Science and researches the consumer goods industry comments on Unilever’s annual results. Dr Martin Kunc said: “The problem that Unilever is facing is directly related to the falling commodity prices. The emerging economies where most of Unilever’s profits are coming from are becoming weaker due to the decline in commodity prices.”The decline in commodity prices impacts directly on the purchasing power of consumers in emerging economies. Consequently, inflation in emerging economies, which is where consumer goods companies like Unilever make most of their profits, will decline reducing Unilever’s profits further in 2016.”While the decline of the costs of raw materials may help Unilever to reduce costs, it will not be enough to sustain profits in the face of widespread weak demand this year. Moreover, future financial problems in emerging economies will create unemployment further hurting demand and sales for Unilever. Consequently, Unilever will face a tough environment in 2016 where deflation is a real possibility to sustain sales.”

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