Whipsawing volatility in emerging markets (EM) clearly hasn't yet dented consumer demand for Unilever's (ULVR) products. A hot summer in Latin America boosted ice cream sales in the final quarter, which contributed to a 7 per cent increase in underlying EM sales growth for the year, compared with flat developed markets. The strong numbers - particularly from its home care and refreshment divisions - meant the company beat expectations and the market showed its appreciation by pushing the stock up 2 per cent.
But chief executive Paul Polman is conscious of tough times ahead for the global economy and the impact bad news can have on consumer demand. Mr Polman hopes the company's strong innovation pipeline, its 'back to basics' focus on how each of its products are priced in each market and its growing market share in key countries, such as the US, should mean it can keep achieving its 3-5 per cent sales growth target into the current financial year. "Let's be realistic," Mr Polman says, "it is a tough environment, but we are better prepared to deal with that."