The consumer goods giant Unilever has released its financial report for the first quarter of 2024. In the first three months, Unilever saw an underlying sales growth of 4.4%, with volume growth rising to 2.2%. All five Business Groups reported underlying sales growth, with Beauty & Wellbeing leading.
Turnover increased by 1.4% to €15.0 billion, with a negative impact of 2.0% from currency fluctuations and 0.9% from net disposals. Power Brands, representing 75% of turnover, spearheaded growth with a 6.1% increase in underlying sales growth, fueled by a 3.8% rise in volume.
Hein Schumacher, the CEO of Unilever said, “Unilever delivered improved volume growth in the first quarter. This was driven by our Power Brands which saw underlying sales growth of 6.1%, with strong performances from Dove, Knorr, Rexona and Sunsilk. We are implementing the Growth Action Plan at speed, focused on three clear priorities: delivering higher-quality growth, creating a simpler and more productive business, and embedding a strong performance focus. This is underpinned by our commitment to do fewer things, better and with greater impact. ”
Beauty & Wellbeing witnessed a notable growth in underlying sales, increasing by 7.4%, with 5.6% attributed to volume and 1.7% to price adjustments. Hair Care achieved growth in the mid-single digits, driven by positive contributions from both volume and price. Dove experienced high-single-digit growth, supported by the introduction of Scalp+ Hair Therapy, which has been clinically proven to enhance scalp health and hair density. Clear, recognized as the world’s top-selling men’s shampoo, also achieved high-single-digit growth, benefiting from the ongoing global rollout of its patented anti-dandruff shampoo. Sunsilk achieved double-digit growth, while TRESemmé saw high-single-digit growth, further expanding its ultra-gloss Lamellar Shine product line to new markets.
Core Skin Care experienced mid-single-digit growth, driven by strong performance in India and the United States, partially offset by a low-single-digit decline in North Asia due to pricing factors. Vaseline recorded double-digit growth, fueled by the successful introduction of Gluta Hya body care products in new markets and the launch of new variants, such as the Smooth and Glow range, which offers the first body lotion with chemical exfoliation. Following its relaunch last year, Pond’s face care sustained its positive momentum, achieving high-single-digit growth primarily driven by volume.
Personal Care saw underlying sales grow by 4.8%, with 1.4% attributed to volume and 3.4% to price adjustments. Deodorants achieved double-digit growth, with high-single-digit volume growth driven by strong performances in Europe and Latin America. Dove’s double-digit growth was supported by the introduction of Whole Body Deodorants in the US, offering 72-hour odor control for overall freshness. Rexona and Axe also contributed to strong growth, benefiting from the ongoing success of their multi-year platforms focused on 72-hour nonstop odor and sweat protection, as well as the Fine Fragrance range.
Skin Cleansing remained flat, with low-single-digit price increases offset by volume declines, mainly due to deflation in India and market challenges in Indonesia. Dove achieved high-single-digit growth with mid-single-digit volume growth, and in the US, a premium range of Dove Body Wash infused with clinically proven skin care serums, including hyaluronic acid, collagen, and vitamin C, was launched.
Home Care experienced underlying sales growth of 3.1%, driven by a 4.3% increase in volume, partially offset by a (1.1)% decrease in price. Fabric Cleaning achieved low-single-digit growth, with mid-single-digit volume growth and negative price impact. Europe led the growth, achieving high-single-digit growth and returning to positive volume growth. India and Latin America also saw volume growth, although price declines in the powders portfolio due to commodity deflation partially offset this growth. OMO experienced low-single-digit growth with mid-single-digit volume growth.
Nutrition saw underlying sales increase by 3.7%, primarily driven by a 4.1% increase in price, partially offset by a (0.4)% decrease in volume. Although volume improved sequentially, it remained negative in Europe, partly due to SKU reductions.
Ice Cream experienced a 2.3% growth in underlying sales, with a 3.2% increase in price, partly offset by a (0.9)% decline in volume. In-home Ice Cream sales remained steady, as price increases were balanced by a decrease in volume. However, out-of-home Ice Cream sales grew in the mid-single digits, primarily due to price increases.
In the Asia Pacific and Africa region, underlying sales grew by 3.6%, with 2.4% attributed to volume growth and 1.1% to price increases. In India, sales grew by 0.7%, driven by low-single-digit volume growth, although this was partially offset by negative price adjustments due to ongoing commodity deflation affecting Fabric Cleaning and Skin Cleansing bars. China experienced mid-single-digit growth driven by volume, particularly in the Unilever Food Solutions business.
In North America, underlying sales increased by 3.6%, with 2.2% attributed to price increases and 1.4% to volume growth. Beauty & Wellbeing experienced robust growth driven by volume, particularly in Prestige Beauty and Health & Wellbeing. Personal Care remained steady, with sales flat due to a strong comparison from the previous year. Nutrition achieved high-single-digit growth, primarily led by mid-single-digit volume growth. Ice Cream saw low single-digit growth driven by volume, although there was a slight price decrease.
In Latin America, underlying sales surged by 9.5%, with strong volume growth of 8.1% and a 1.3% increase from price adjustments. Growth was widespread across all Business Groups, with double-digit volume growth observed in Beauty & Wellbeing, Personal Care, and Home Care. Brazil experienced high-single-digit growth, with double-digit volume growth driven by strong performances in Dressings and Deodorants. Mexico also saw double-digit growth, with all Business Groups achieving growth in both volume and price. Despite challenging conditions, Argentina maintained strong performance, achieving double-digit growth in both volume and price.
In Europe, underlying sales saw a 4.0% increase, primarily driven by a 5.5% rise in price, although this was partially offset by a (1.5)% decline in volume. Strong growth was observed in Home Care, Personal Care, and Beauty & Wellbeing, with positive contributions from both volume and price. Ice Cream experienced low-single-digit growth primarily due to price increases, while Nutrition saw a low-single-digit decline driven by negative volume. The United Kingdom, France, and Eastern Europe performed well, with positive volume growth. However, volumes remained negative in Germany and the Netherlands.
