Netherlands-based consumer goods giant Unilever posted a 5% fall in second-quarter operating profit to €1.37billion and a 1% dip in sales to €10.37 billion, resulting in the company's shares falling by more than 7%, despite the company maintaining its full-year projections.

During the first half of the year, operating profit reached €3.18 billion, a rise of 16%. Underlying sales in Europe rose 2.3% during the first half thanks to higher prices. Sales volumes dipped 2.9% during the second quarter due to weaker ice cream sales, Unilever said.

Margins in Europe rose due to profits on disposals. In the Americas, underlying sales rose 5.7% with price increases in the US offsetting lower volumes. Brazil and Mexico boosted sales in Latin America, which rose 11%. Margins dipped 0.6% due to higher commodity costs. Underlying sales from its businesses in Asia and Africa rose 14.7%.

At constant exchange rates, operating profit was up 3% during the three months to the end of June, while turnover rose 6%. Unilever chief executive Patrick Cescau said the company had put in a "good performance" during the first half, posting underlying sales growth of 7% in a "challenging environment." Nevertheless, the market was unconvinced and Unilever's shares fell 7.02% to €17.84.