Unilever looks to increase R&D to stem decline in profits

SHANGHAI: The global consumer goods heavyweight Unilever pledged to increase its profit margin in the second half of this year through greater input in research and development (R&D) and continued investment in fast growing emerging markets, the company's senior executive said yesterday.

"This year we will reignite the growth of the company without compromising operating margin and cash flow," CEO Paul Polman said in an interview. He was talking on the sidelines of the opening of a Unilever global R&D center in Shanghai, one of its six global research centers.

The London- and Rotterdam-based maker of Dove soap, Lipton tea and Wall's ice cream reported a 4.1 percent growth in second-quarter underlying sales while its profit fell 17 percent as its margin eroded amid the economic downturn. Net profit was 758 million euros in the quarter, down from 909 million euros in the same period a year earlier.