Today, Unilever released its financial report for the third quarter (Q3) and the first nine months of 2024. The company reported a turnover of €15.2 billion in Q3, with underlying sales growth (USG) of 4.5%. This growth was primarily driven by underlying volume growth (UVG) of 3.6%, marking the fourth consecutive quarter of positive and improving volume growth. Unilever’s turnover for the first nine months reached €46.4 billion, with a 4.3% increase in USG. Importantly, all business groups contributed to this positive volume growth, while price increases moderated to 0.9%, in line with expectations.
Specifically to segment, the Beauty & Wellbeing segment recorded €3.2 billion with USG of 6.7%; in the first nine months of 2024, the segment reached €9.8 billion with USG of 7%. In this segment, Hair Care delivered low-single digit growth, with brands like Dove and TRESemmé driving this performance. Dove continued to benefit from the success of its Scalp + Hair Therapy product line, while TRESemmé saw mid-single digit growth due to its treatments and styling products. Sunsilk, Unilever’s largest hair care brand, saw low-single digit growth, while Clear achieved high-single digit growth outside of China but remained flat overall.
Skin Care also performed strongly, achieving mid-single digit growth led by the U.S. market. Dove posted strong double-digit growth, supported by the successful launch of High Potency Body Serums and 3-in-1 face care treatments in Brazil. Pond’s also grew in double digits, driven by its Bright Miracle and Age Miracle face care ranges. Meanwhile, Vaseline continued to perform well, buoyed by the rollout of premium innovations such as Radiant X and Gluta Hya, along with the U.S. launch of the Pro VitaB3 SerumBurst Lotion.
The Health & Wellbeing and Prestige Beauty segments saw particularly strong performance, with a fifteenth consecutive quarter of double-digit growth. Health & Wellbeing, driven by strong brands like Liquid I.V., Nutrafol, and Olly, outperformed despite the Prestige Beauty segment facing lower growth in the United States and China due to market slowdowns. Prestige brand Hourglass led growth with its hero products, while Paula’s Choice experienced a slowdown, reflecting the broader challenges in the U.S. and Chinese beauty markets.
As for the Personal Care segment, it recorded €3.4 billion with underlying sales growth of 4.4% in Q3 and €10.4 billion with underlying sales growth of 5.2% in the first nine months of 2024. Deodorants grew by high single digits, with Latin America leading the way through double-digit volume growth. Europe and North America also experienced mid-single digit increases. Dove once again played a key role in the strong performance of this category, with its expansion into the whole-body deodorants market, alongside solid growth from Axe and Rexona, particularly in their fine fragrance and clinical ranges.
The Skin Cleansing segment grew by low single digits, driven entirely by volume growth. In Europe, this segment saw high single-digit growth, while the U.S. experienced mid-single digit increases. Dove, bolstered by its relaunch of body wash products and premium body wash infused with skincare serums in the U.S., continued to excel. Growth in this segment was somewhat tempered by deflationary pressures in India and market declines in China, alongside operational challenges in Indonesia.
Regionally, Unilever’s performance was robust across both developed and emerging markets. Developed markets, which account for 43% of the company’s turnover, saw a 6.9% increase in USG, with a substantial 6.8% contribution from volume and just 0.1% from price increases. Volume growth in developed markets was broad-based, with particularly strong performance from the Beauty & Wellbeing division in North America. In contrast, emerging markets, which represent 57% of Unilever’s turnover, grew underlying sales by 2.9%, with 1.4% from volume and 1.5% from price. India recorded a 2.3% USG, supported by a 3.4% increase in volume, although underlying price growth in India declined by 1.0%, partly due to lapping a one-off indirect tax benefit from the previous year. Without this factor, price growth would have been flat.
Latin America saw 3.8% growth, although this was slower than in previous periods due to a decline in the laundry powders market in Brazil and a deceleration in Mexico’s growth after eight consecutive quarters of double-digit increases. Despite economic challenges, Africa and Turkey continued to deliver double-digit growth, driven by both positive price and volume performance.
The turnover in the Asia-Pacific Africa region for the third quarter was €6.5 billion, with underlying sales growth of 4.5%. For the first nine months, the turnover was €19.9 billion, with underlying sales growth of 4.3%. China, on the other hand, experienced a low single-digit decline, with weaker market conditions across categories. Unilever is currently overhauling its go-to-market approach in China, focusing on sharper category strategies and refined geographic targeting. Similarly, South East Asia posted a mid-single digit decline, with Indonesia being a major factor, where sales fell by 18%. However, the Philippines and Thailand showed positive, volume-led growth, partially offsetting the decline.
Unilever’s continued focus on innovation and brand investment played a key role in its overall performance. In North America, underlying sales grew by 7.4%, driven primarily by volume growth, particularly in the Beauty & Wellbeing and Personal Care segments. Europe’s growth was similarly supported by a strong innovation pipeline and increased brand investment, which helped underpin the company’s solid performance across regions and categories. Although challenges remain, particularly in key markets like China and Indonesia, Unilever is taking steps to stabilize and grow its presence in these regions through strategic adjustments in pricing, stock management, and market approaches.
