...2014 Results: Unilever PLC's (Unilever) sales declined by 2.7% to EUR48.4bn in FY14, impacted by adverse currency movements of 4.6%, economic weakness in some of its key markets and slower growth in emerging markets which now account for 57% of group sales. Excluding the effect of acquisitions and exchange rates, underlying sales rose 2.9%. Although Unilever continues to drive efficiencies in improving operating performance, Fitch does not expect any meaningful improvement in 2015 given muted consumer demand in its markets. Profit Margin Expansion: Despite Unilever's gross margin declining by 20bps to 41.4% in 2014, its core operating margin was up 40bps to 14.5% at current exchange rates. This increase was possible through pricing, savings and mix and further efficiencies in advertising and promotions, and reductions in overheads. Fitch Ratings believes that Unilever is well placed to deliver further margin expansion given its track record over the last six years against a difficult trading...
