Unilever CEO: Emerging Economies Will Continue to Slow Down

TEMPO.CO, Geneva - Unilever’s Chief Executive Officer Paul Polman predicted the economic slowdown in emerging markets to continue, as many nations still need to do structural reforms, in order to adapt to new economic conditions following the boom in recent years. 

"They are relatively stronger economies, but still fragile," Polman said, as reported by Bloomberg. 

Polman added the sluggish growth of the economy in a number of emerging markets can end, provided they are consistent in structural reforms. He admitted this sluggish growth has had an impact on Unilever’s performance. 

Unilever, the world’s second largest producer of consumer goods, expects sales during the second half of the year to be affected by the slow growth of emerging markets. The company generates more than half of its revenue from these countries, such as India and China. 

Underlying sales rose 3.2 percent during the third quarter of this year—the weakest increase in the last four years—much lower than the first semester, when sales rose five percent. 

“I’m always surprised that I’m the one who sort of has to announce that there’s a slowdown in emerging markets,” Polman said on November 29, at a reception where he was awarded the 2013 World Wildlife Fund Duke of Edinburgh Conservation Medal, for Unilever’s efforts to reduce environmental damage.

BLOOMBERG | SETIAWAN ADIWIJAYA