Flat sales of leading brands at Unilever and lower second-quarter operating profit missed analysts' expectations, but the Anglo-Dutch consumer goods group stuck to its 2004 earnings per share target today.
Shares in the world's third-largest food group fell around 4 per cent in both Amsterdam and London.
Finance director Mr Rudy Markham told reporters that lower interest costs, a tax benefit and cost savings from stepped-up restructuring programmes would help the group reach that goal.
Sales of the top 400 brands, which Unilever previously indicated could in 2004 gain by more than the 2.5 per cent of last year, were seen improving in the second half of the year.
Unilever said operating profit before exceptional items and amortisation of goodwill and intangible assets, the figure closely watched by investors, slipped 2 per cent to €1.613 billion.
This fell short of the average forecast from a Reuters poll of 12 analysts for €1.679 billion.
Unilever, whose sales are under pressure from weak consumer markets, said in a statement there was a further slowdown in the second quarter and that it had suffered from poor ice cream and ready-to-drink tea sales in Europe due largely to a cooler start to summer.
By 8:12 a.m. Irish time Unilever was 3.77 per cent weaker in Amsterdam and 4.04 per cent down in London, underperforming the DJStoxx food and beverage index which was 0.6 per cent lower.