Unilever sees personal care business returning to higher growth 'soon'

Anglo-Dutch consumer goods maker Unilever expects new products and increased distribution to help its personal care business return to growth above 4 percent soon, after a recent slowdown.

Alan Jope, head of the unit that includes Dove soap and Sunsilk shampoo, said he was not satisfied with its 2.4-percent growth in the year so far, but he was “determined and confident” there would be a rebound.

Speaking at an investor event at Unilever’s New Jersey offices that was simultaneously broadcast over the internet, Jope declined to say exactly when the rebound would happen.

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Since rebuffing an unexpected $143-billion takeover offer in February from Kraft-Heinz, Unilever has been under pressure to prove it can quickly deliver comparable returns as a standalone company.

In April it announced a share buyback plan, a new profit margin target, a plan to sell its shrinking margarine and spreads business and a review of its dual-headed Anglo-Dutch structure.

In explaining the slowdown in the business that is seen as Unilever’s most attractive, Jope pointed to lower growth of the global market, weakness in two big countries - Indonesia and Brazil - and increased competition from local rivals, such as Patanjali in India and Wardah in Indonesia.

While the first two issues were temporary, Jope said local competition was a long-term phenomenon, and that was partly why Unilever was focusing on increasing its agility in local markets.

Jope cited several new brands for aiding the unit’s growth, including prescription-strength Dove products for people with psoriasis or eczema; Skinsei, a personalized, subscription-based skincare regimen sold directly to consumers; and a beauty brand called Love Beauty and Planet.

Investors were disappointed last month when Unilever reported a surprise slowdown in sales, citing lost market share to smaller rivals in certain areas.

Its shares have fallen more than 7 percent since then, but remain 26 percent higher than they were before Kraft’s approach.

Unilever said on Tuesday it favored collapsing its dual-headed, Anglo-Dutch structure into a single entity, but delayed a decision as to where it would be based, Britain or the Netherlands, avoiding for now a choice with political dimensions amid ongoing Brexit negotiations.