UK Politics

Unilever to review tea business as profits tank by a third

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Unilever PLC (LON:ULVR) has started a strategic review of its global tea business, which includes Lipton, Lyons and PG Tips.

Chief executive Alan Jope said in a release the FTSE 100-listed group continues to evaluate its portfolio and the review is part of that process.

The tea division is suffering soft demand for black tea in developed markets, prompting the company to focus on premium black tea, black tea in emerging markets and fruit and herbal variants.

The 2018 sale of its spreads business to US private equity firm KKR ended up hitting profits last year.

READ: Unilever upgraded amid “bleak” sentiment, Jefferies says downside risks now limited

The Magnum ice cream and Dove cosmetics producer posted a 33% slump in profits to €8.2bn for the year to 31 December.

Underlying sales growth came at 2.9% as anticipated due to a slowdown in South Asia, difficult trading conditions in West Africa and ongoing softness in developed markets, while turnover for the year was up 2% at €52bn.>Read More – Source