Emerging markets are continuing to propel Unilever PLC's (ULVR.LN) revenue growth, even as the consumer goods giant Thursday flagged a worsening global economy and further troubles in Europe as its profit slipped.

The maker of Ben & Jerry's ice cream and Bertolli olive oil spreads, as well as Dove soap, now generates more than half of its sales from developing economies, meaning it has fared better than rivals that are more exposed to recession- ridden Europe. In the last few months, France'sDanone SA (BN.FR) and U.S.-based Procter & Gamble Co. (PG) have both issued profit warnings, with the former partly attributing the move to its exposure to the battered Spanish economy.

In the second quarter, Unilever's sales rose by a double-digit rate in emerging markets, but contracted in Europe, reflecting squeezed consumer spending as a result of government austerity measures, unemployment and inflationary pressures. Poor summer weather in northern Europe also ate into ice cream sales, it said.

Chief Executive Paul Polman said the company will continue to strengthen its position in emerging markets like Indonesia and India, but added that he expects continued economic volatility.

Economists are also concerned that key booming consumer economies like Brazil and China are showing signs of contraction.

Chief Financial Officer Jean-Marc Huet said Unilever will run an "iron fist" on costs in Europe, without elaborating. Last month, Unilever shook up its U.K. business and closed a number of sites, resulting in job losses, in the face of increasingly challenging conditions.

The Anglo-Dutch company Thursday warned that commodity markets remain volatile, including oils and corn, but kept its forecast on full-year input cost inflation to mid-single digits.

Unilever, which also competes with Nestle SA (NESN.VX), said its first-half operating margin was flat at 13.7% following increased promotional spending. Still, it remains on track to deliver a "modest improvement" this year.

The company said first-half net profit fell 2.7% to EUR2.18 billion, hit by lower income from business disposals. The company doesn't break out second-quarter net profit.

First-half sales rose 12% to EUR25.40 billion, while second-quarter sales increased to EUR13.3 billion from EUR11.93 billion, beating market forecasts of EUR13 billion.

At 0935 GMT, Unilever shares were up 96 pence, or 4.5%, at 2236 pence, the third-highest gainer on the FTSE 100 index. Sanford Bernstein analyst Andrew Wood said the results were good in the current environment.

Stripping out acquisitions, disposals and currency movements, second-quarter sales rose 5.8%, but slowed compared with a rise of 7.1% in the same period last year and an 8.4% increase in the previous three months. The metric is a closely watched measure of the company's performance. Sales in emerging markets and the Americas rose 11% and 7.5%, respectively, with North America up 3.3%. Europe sales dipped 2.2%.

On the same basis, volumes rose 2.2%, compared with 1.9% growth last year and a 3.5% increase in the first quarter. Second-quarter pricing increased 3.5% as the company, like its peers, compensates for soft volumes and claws back commodity costs.

It declared a quarterly dividend of EUR0.243 a share, up from EUR0.225.

nasdaq.com