Executive Summary

• Unilever reported FY16 sales of €52,713 million, ahead of consensus of €52,373 million, but down 1.0% from FY15. At constant exchange rates, sales increased by 4.3%.
• Gross margin increased by 50 basis points and the operating profit grew by 3.8% (up 5.8% at constant rates) to €7,801 million.
• Underlying sales growth was 3.7%, but volume growth was mostly flat in aggregate, the company noted, impacted by devaluation-led cost increases in several regions.