In the third quarter of 2024, Unilever reported a substantial increase in demand for its core brands, while maintaining flat turnover.
Unilever, the prominent London-listed consumer goods company, reported a strong performance in its third quarter of 2024, driven largely by its enduring power brands. These brands, including Dove, Hellmann’s, and Magnum, saw significant demand increases, contributing to an underlying sales growth of 4.5% compared to the previous year. Meanwhile, the company recorded a 3.6% rise in volume growth, indicating robust consumer interest.
Although Unilever’s overall sales for the nine months leading to September rose modestly by 1.3% to £12.7 billion, the company experienced notable success in certain divisions. The ice cream segment, in particular, stood out with an underlying sales increase of 9.8% and a volume growth of 6.7%. In contrast, the nutrition division, which encompasses brands such as Hellmann’s and Knorr’s, saw a slight sales rise of 1.5%.
Hein Schumacher, Unilever’s Chief Executive, attributed this sales momentum to the company’s strategic focus on its power brands. Schumacher highlighted the impressive performances of brands like Dove, Liquid I.V., Comfort, and Magnum, noting the company’s continued commitment to the nutrition category. He remarked, “It is very important that we continue to transform the nutrition business to a more focused portfolio.” Schumacher further emphasised efforts to enhance competitiveness within the condiments sector, a core area for brands like Hellmann’s.
Despite the positive sales trends, Unilever’s fiscal outlook for the full year of 2024 remains unchanged. The company confidently maintains its target of achieving an underlying sales growth between 3% to 5%. However, Schumacher cautioned about “subdued pricing” in the forthcoming quarters, predicting a potential return to moderate pricing levels in the future.
Additionally, Unilever announced that the separation of its ice cream division is proceeding as planned, with completion expected by the end of 2025. This strategic move includes setting up the necessary legal entities, establishing a standalone operating model, and completing financial carve-outs. An independent committee has been appointed to propose the best course of action for this transition.
Unilever’s focus on its power brands has driven notable growth in the third quarter of 2024, demonstrating resilience and strategic direction amidst a flat overall turnover.
