Unilever’s Q3 trading statement underscores its robust performance, albeit amid significant currency headwinds. The Anglo-Dutch consumer products giant reported a total turnover of €15.2 billion, driven by an impressive underlying sales growth (USG) of 5.2%. However, reported turnover showed a decline of 3.8%.
Within the expansive Beauty & Well-being division, turnover amounted to €3.1 billion, indicating a 4.9% decrease on a reported basis. Nonetheless, this division demonstrated a robust 7.4% USG growth. The larger Personal Care division achieved a turnover of €3.6 billion, reflecting a reported decrease of 2.2%. Still, it registered an 8% increase in USG.
Unilever credits its USG to higher prices, contributing to 5.8% of the 5.2% growth, with a slight offset from a 0.6% volume decline. Notably, underlying price growth is gradually moderating as inflation eases, while positive underlying volumes are observed in both the Beauty & Well-being and Personal Care segments.
The reported turnover decline was primarily influenced by negative currency effects, accounting for 8% of the drop, and 0.6% resulting from disposals, net of acquisitions.
Unilever’s billion-plus-euro brands, representing 56% of total turnover, achieved an impressive underlying sales growth of 7.2%, with 1.4% attributed to volume growth. Renowned brands like Dove and Sunsilk made significant contributions to this strong performance.
Delving deeper into divisional performance, Beauty and Well-being recorded a remarkable 7.4% USG, with a balanced contribution from both price and volume growth. Prestige Beauty and Health & Wellbeing segments continued to demonstrate robust growth.
The Personal Care division’s growth of 8% was divided into 4% from price and 3.9% from volume, driven by double-digit growth in Deodorants.
Emerging markets showcased a substantial underlying sales growth of 8.3%, with improved volume growth at 2.6% and price growth of 5.6%. Latin America stood out with a USG of 14%, supported by a volume growth of 6.2% and slightly slower price growth at 7.4%. South Asia experienced mid-single-digit growth, adjusting prices in Skin Cleansing and Fabric Cleaning. However, the Chinese market’s recovery was slower than expected, resulting in mid-single-digit sales decline, while South East Asia saw low-single-digit growth.
In developed markets, growth was modest at 0.8%, primarily driven by price growth of 6.3% and a volume decline of 5.2%. North America and Europe posted low-single-digit growth, primarily due to price increases.
