Today (October 26), Unilever released its financial report for the third quarter, it showed that its turnover for the period decreased by 3.8% to €15.2 billion ($16 billion). The company achieved a 5.2% increase in underlying sales, driven by a 5.8% growth in prices, partially offset by a 0.6% decline in volume.
Unilever stated that its billion+ Euro brands, which account for 56% of the Group’s turnover, showcased robust growth, with underlying sales increasing by 7.2%. This growth was fueled by a 5.7% increase in prices and a 1.4% rise in volume. Leading the way were strong performances from brands like Dove, Hellmann’s, Rexona, and Sunsilk.
The Beauty & Wellbeing segment, which contributes to 20% of the Q3 turnover, delivered another impressive performance. It achieved a 7.4% growth in underlying sales, with 3.6% coming from price increases and 3.6% from volume growth.
Hair Care experienced mid-single-digit growth, primarily driven by price increases and notable success in South Asia and Latin America. Sunsilk, in particular, achieved double-digit growth, benefiting from a successful relaunch featuring the new Activ-infusion formulation enriched with oils, vitamins, and proteins. Additionally, Unilever introduced the premium Nexxus brand in Japan, combining professional salon heritage with molecular protein science.
Core Skin Care also experienced mid-single-digit growth, with Vaseline contributing significantly to this performance. However, AHC in North Asia faced a double-digit decline as the brand underwent a channel reset.
Prestige Beauty and Health & Wellbeing segments continued their strong growth. In Prestige, brands like Dermalogica, Tatcha, and Hourglass drove growth, with the introduction of luxurious skin tint products that provide hydration. Health & Wellbeing saw strong growth in Nutrafol, and Liquid IV performed well, expanding its range to include sugar-free and kids’ hydration solutions.
The Personal Care segment, comprising 24% of Q3 turnover, achieved an underlying sales growth of 8.0%. This growth was driven by a 4.0% increase in prices and marked the third consecutive quarter of volume growth, up 3.9%.
Skin Cleansing achieved mid-single-digit growth, with volumes returning to positive territory. Lux performed strongly, and Lifebuoy was relaunched in South-East Asia with a new formulation containing multivitamins to combat dangerous germs. The Dove Personal Care portfolio achieved double-digit growth, driven by a robust performance in the deodorants category.
Oral Care achieved high single-digit growth, with brands like Pepsodent and Close Up achieving double-digit growth rates.
Commenting on the performance, Hein Schumacher, CEO of Unilever stated Despite Unilever’s strengths, its performance in recent years has not matched the Group’s inherent potential. The quality of growth, productivity and returns have failed to materialize. “Today we are setting out our action plan to close this gap. We will drive faster growth by stepping up innovation and investment behind our Power Brands; we will drive simplicity and productivity, leveraging the full strength of our operating model; and we will sharpen our performance culture through strong leadership and stretching goals.”