THE WHAT? Unilever has witnessed a slump with stock falling as much as 6.6 percent in Amsterdam this week, with analysts stating the fall likely implies the company’s Q4 growth will be its weakest in more than a decade, according to Bloomberg.
THE DETAILS The Dove maker has also stated its sales gains will be below its full year guidance, with its 2020 outlook falling in the lower range.
THE WHY? The slump is said to be a catalyst of an economic slowdown in South Asia as well as tough conditions in West Africa.
It is also thought to be attributed to new CEO Alan Jope maintaining predecessor Paul Polman’s annual growth forecast of 3-5 percent, despite a troubling industry for mass market brands as consumers continue to shift to niche and private label products.
Speaking in a conference call, Jope said, “We are very strongly developed in South Asia, so when India takes a slowdown, we definitely feel it more than some of our competitors. We are far from crisis conditions. It’s just a little more turbulent than we’ve previously seen.”