Unilever faces tougher times in emerging markets Unilever, the maker of Dove soap and Magnum ice cream, said it was facing a tougher trading environment in Russia and Brazil as it posted a €6.25bn pre-tax profit for 2011. The group's emerging markets operations saw underlying year-on-year sales growth slip from 13 per cent in the third quarter of the year to 12.3 per cent in the fourth quarter, making the annual growth rate 11.5 per cent in these territories. "Emerging markets in particular have seen a moderation in volume growth, albeit from high levels, whilst developed markets remain broadly flat," Unilever said on Thursday in its annual results statement. Asked to specify which markets in particular were seeing a slowdown in growth, Jean-Marc Huët, chief financial officer, singled out Russia - a particular focus for Unilever - and Brazil. The overall market in Russia ... is sluggish. It is not back to pre-crisis times, whereas a lot of the other emerging markets are," he said. He said the issue in Brazil was one of a general slowdown in economic growth, but he expressed satisfaction with Unilever's performance there. Mr Huët also said the issue of commodity price increases would not fade away in 2012. Unilever's commodity costs for 2011 were 15 per cent higher than in 2010. He said a mid-single digit increase was likely in 2012. Unilever notched up €46.47bn in sales in 2011, up 5 per cent on 2010. On an underlying basis that excludes the impact of exchange rate fluctuations, acquisitions and disposals, the increase was 6.5 per cent as a flat performance in western Europe acted as a drag on emerging markets. In the fourth quarter, underlying sales growth was 6.6 per cent, overwhelmingly as a result of price increases rather than volume growth. Unilever's personal care and home care arms - whose brands include Axe deodorant and Domestos bleach - continued to outpace its food divisions, which make Flora margarine, Lipton tea and Knorr soup. Full-year operating profit rose one per cent to €6.43bn, while pre-tax profit rose 2 per cent to €6.25bn. Diluted earnings per share were flat at €1.46. Unilever's London-listed shares fell 3 per cent to £20.21 in early morning trading on Thursday.