Less is more for Unilever

Unilever is expected to show its strategy of focusing resources on fewer leading brands is paying off, when it announces first quarter results next Friday.

Analysts are expecting a net profit of 856-865 million euro, which is £527-532m.

It's a rise of 24-26% on the previous year's profit of €685 million.

"Leading-brand sales growth will be around 3% in Q1, a lower rate than in the previous year, but this can be explained by the later timing of new product launches. Innovative introductions from March onwards should drive growth faster from now on," said Williams de Broe analyst David Hallam.

Analysts are forecasting that savings from restructuring, procurement, the Bestfoods integration, and cost recovery through price increases in the emerging markets, will result in an improvement in the group's operating margin of 1.5%.

"There should be further progress through the rest of the year, but at a slightly slower rate," said Mr Hallam.

The figures should also show a lower interest charge, reflecting both a cash inflow and lower rates.