Unilever’s earnings drop 27 percent

Unilever, the maker of Ben & Jerry’s ice cream, Dove soap and Lipton tea, reported a 27 percent drop in second-quarter net profit Thursday, singling out the troubles of its dieting product Slim-Fast and tough competition in Europe.

The Anglo-Dutch consumer goods company earned $967 million (784 million euros), down from 1.07 billion euros a year earlier. Sales totaled $12.47 billion (10.22 billion euros), up 1.4 percent from the same period last year.

Although Slim-Fast accounts for only 1 percent of its revenue, Unilever said it took a writedown of $431 million (353 million euros) on the business, attributed to the shrinking popularity of meal substitutes.

There is “a lot of consumer confusion out there” about dieting, said Chief Financial Officer Rudy Markham, with people continuing to move away from meal-replacement products despite the declining popularity of low-carb diets.

Analysts were encouraged by Unilever’s report that underlying sales growth was 3.3 percent globally, which was higher than predicted. Underlying sales rose 5 percent in the Americas, while in Europe the figure shrank by 0.6 percent in the face of strong price competition.

Unilever shares gained 4 percent to $69.78 (57.20 euros) in Amsterdam trading.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

“Conditions in Western Europe generally remain difficult, and we have to do to improve our competitiveness there,” said Chief Executive Patrick Cescau. Emerging markets in the developing world were “a key driver of growth,” he said.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

Cescau, who took over the company’s top job in February, said Unilever expects no significant market changes for the rest of the year.

“We continue to drive cost efficiency through our savings programs and these are being reinforced as we integrate our foods and home and personal care operations around the world,” he said. “This has meant that so far this year we have largely contained the impact on operating margin of higher input costs and the increased level of investment behind our brands,” he said.