As the pair published mixed results, European consumer goods companies Unilever and Nestle announced slowing growth in revenue in China. In light of the Anglo-Dutch company hitting its revenue expectations, Unilever's portfolio ticked up 1.3 percent on Thursday.
A slowdown in India and China is breaking Unilever's quarterly sales growth, highlighting the challenges facing Chief Executive Alan Jope as he attempts to boost the business of consumer goods giant in emerging markets.
Jope has pledged accelerated growth after taking the reins in January by investing in the likes of Vietnam and Bangladesh, where growing populations and an increasing middle class are driving demand for household products.
Overall, sales growth in emerging markets was 5.1 billion, driven by markets in South East Asia, while home care items such as Sunlight dishwashing fluid and Cif Stain Remover have increased sales.
"By creativity and portfolio growth, we must step up profitable top-line output to support the fast-growing geographies and platforms," Jope said.
Nestle's (NESN) organic growth in the first nine months of the year was 3.8 percent, with development in the third quarter marginally decelerating after a strong second half, outperforming Unilever rivals.
Sales of 68.36 billion Swiss francs ($69.1 billion) in the nine months through Sept. 30 was up from 66.42 billion francs year-on-year. The world's largest food and drink firm, however, said development in China so far this year has been slow.
In a move to reinvigorate production, the Swiss giant also said it would overhaul its bottled water sector.
Nestle has reported that between 2020 and 2022 it would give investors up to $20 billion. The company's stocks were down 2.2 percent late Thursday.
In China, brick-and-mortar retailers' sales growth declined from 2 percent a year earlier to 1 percent, Unilever finance chief Graeme Pitkethly said.
Hyperinflation has driven consumers away from supermarkets in Argentina, another of its wide emerging markets, and has contributed to a 4 fold fall in sales.
These factors contributed to a rapid decline in emerging market exports, which in the third quarter was up 5.1 percent, but a far cry from the previous quarter's 7.4 percent growth. Emerging markets add 61 percent to the overall sales of the business.
Growth in developed markets has also slowed, dipping by 0.1 percent as consumers turn to more niche products, while Europe faces harder contrasts with last year as a warm summer improved the region's ice cream sales.
Ultimately, the underlying sales growth grew to 2.9 percent in the period, missing a 3 percent average estimate, according to an analyst consensus issued by a firm.
