Unilever grocery giant reports 'challenging pricing environment' in Europe   

Unilever reported a fall in third quarter sales in Europe due to price discounts. 

Unilever, the giant grocery and food products supplier, reported a fall in sales in Europe in the third quarter due to price discounts, but global turnover rose amid the Covid-19 pandemic helped by sales of Ben & Jerry's ice cream and detergents such as Cif and Domestos in other regions. 

In Europe, Unilever said sales by volume and price both fell in "a challenging environment", as "price declines were driven by a step up in promotional intensity across the region, as the depth and volume of promotions increased". However, demand increased for detergents in the region, the company said. 

Europe contributed €2.9bn of the overall global sales of €12.9bn in the three months to the end of September.   

Across its products, the company highlighted sales growth of Hellmann’s; new launches of Dove’s and Lifebuoy in a number of European markets; the launch of Domestos in China; and new formats for Omo and Comfort in Latin America.      

"Covid-19 continues to influence consumer behaviours and channel dynamics in our markets," the company said. 

"In North America, market growth continued to be driven by elevated demand for foods consumed at home. European markets saw a mixed picture on growth and a challenging pricing environment," Unilever said, while growth in China improved. 

"After a strict lock-down earlier in the year, India saw a pick-up in economic activity, even though cases of Covid-19 continued to increase. In Indonesia and Latin America markets contracted in the third quarter," it said. 

Chief executive Alain Jope said: "The environment we are operating in will remain unpredictable in the near term, so we will continue to maintain the speed and agility of our response. Our focus remains volume-led competitive growth, delivering absolute profit, and free cash flow.”