Anglo-Dutch food and soap company Unilever Thursday announced profits sharply down, describing the results for 2004 as "clearly very disappointing". The company simultaneously announced a major shake-up in its management structure, merging its two boards, based in Rotterdam and London since 1930, into one. Turnover fell to 40.4 billion euros, 6 per cent down on the 2003 figure, largely as a result of poor performance from the Slim-Fast brand, which saw a write-down of 650 million euros. Net profits declined 32 per cent to 1.8 billion euros, as profit margins fell as a result of price cuts to ensure market position. Unilever said efforts to turn Slim-Fast around were bearing fruit and that market share, which had been declining, was now stable. The company said its restructuring would not be as radical as that announced recently by Royal Dutch Shell, which also had joint Dutch and British management boards and has unified them. The new head at Unilever is French executive Patrick Cescau, until now the co-chairman based in London, and the reorganization is expected to be complete by April this year. Dutch co-chairman Antony Burgmans is to stand down to take an advisory role. "We have concluded that there is a need for clearer leadership and that we should go over to a simpler structure with a sharp operational focus," Burgmans said. The company booked exceptional items totalling 1.7 billion euros, comprising the 650 million euro write-down at Slim-Fast, 845 million in restructuring costs and 177 million for a sales tax liability in Brazil. The company saw sales fall 3 per cent in European markets, which make up 40 per cent of total sales. Sales in the United States grew 1.5 per cent, while Asian growth was at 1.4 per cent.
