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While emerging markets slowed, there were only limited signs of recovery in Europe and the US, with little improvement in either consumer confidence or unemployment. This is the thinking behind the Unilever Sustainable Living Plan USLP and our vision to double the size of the business while reducing our environmental footprint and increasing our positive social impact.
Underlying sales growth was once again ahead of the market, at 4.
Growth was driven by Personal Care and Home Care, which continue to outperform the markets and our competitive set. Dove had a particularly impressive year. Home Care also delivered strong underlying growth. Foods has been a major cash contributor for Unilever, allowing us to finance faster expansions in Home Care and Personal Care.
As part of our strategy of making Foods fit for growth, we sharpened the portfolio further in with the divestment of a number of less strategic, underperforming brands, like Wish-Bone, Skippy and Unipro. Additionally, we expanded our low-cost business models and further sharpened our choices in capital expenditure.
In tea, we have renewed our focus on driving the core business through our Lipton brand and we were pleased to welcome the premium T2 business to our portfolio. We achieved this again indespite further investments in advertising and promotion to strengthen the business. Gross margin expansion of 1.
We increased investment further in manufacturing, with the construction of five plants currently under way, as well as continuing to upgrade our IT systems. Employee engagement scores rose again and our commitment to building world- class leaders was re-affirmed with the opening of our state-of-the-art management development centre in Singapore.
We also embarked on a major simplification exercise, Project Half for growth, which aims to rework our most complex processes and systems to free up time and resource to put behind our principal growth opportunities.
We will position Unilever accordingly and drive out complexity and cost to fund growth opportunities. The good news is that we have no shortage of opportunities: We are making good progress in driving bigger innovations faster across the world but we need to continue to set the bar higher.
Once again, we will remain focused on delivering profitable volume growth ahead of our markets, steady and sustainable core operating margin improvement and strong cash flow. As this Annual Report highlights, the USLP is driving waste and inefficiencies out of the system and helping us transform the supply chain.
Suppliers and customers are increasingly keen to work with us under the USLP and, by helping to grow our business in a responsible and equitable way, the USLP is benefiting all our stakeholders, including our shareholders.
It is in stimulating the growth of our brands that the USLP really comes to life. There were many inspiring examples in .Master every aspect of your financial life with expert advice and how-to guides on topics ranging from investing and debt management to finding a new job.
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This ranking shows the top FMCG companies worldwide in , by net sales. In that year, Unilever was ranked as fourth largest FMCG company worldwide with net sales of about about billion U.
Learn how Steve and his team have learned that applying a common "transaction vs. relationship" go-to-market approach can help scale people, process, and technology across its SMB, Commercial, and Consumer Customer Segments.