Unilever experienced significant growth in the third quarter of 2024, driven by remarkable demand for its power brands, despite flat turnover.
The company reported an underlying sales growth of 4.5% in comparison to 2023, accompanied by a rise in volume growth to 3.6%. While overall sales increased by 1.3% for the nine months up to the end of September, reaching £12.7bn, the most notable growth was observed in its ice cream division. Here, underlying sales soared by 9.8%, with volume growth at 6.7%. Meanwhile, the nutrition arm also experienced a slight increase in underlying sales by 1.5%.
CEO Hein Schumacher attributed this success to the strength of Unilever’s power brands, highlighting “particularly strong performances” from Dove, Liquid I.V., Comfort, and Magnum. Emphasising a focused approach in nutrition, Schumacher noted their concentration on enhancing competitiveness within this core category, which includes brands like Hellmann’s and Knorr’s. He stated, “It is very important that we continue to transform the nutrition business to a more focused portfolio. To that end, we are actually improving competitiveness particularly on condiments.”
Looking forward, Unilever’s full-year outlook for 2024 remains on target, with confidence in meeting its 3% to 5% underlying sales growth aspirations. Schumacher mentioned expectations of “subdued pricing” in the forthcoming quarters, with a likely moderate price adjustment anticipated thereafter.
In addition, Unilever is progressing with the separation of its ice cream division, a move announced in March, which is scheduled for completion by the end of 2025. This separation involves establishing an independent operating model and legal entities, guided by an independent committee to determine the optimal future direction for the business.
Unilever’s strategic focus on its power brands and nutrition category transformation underscores its commitment to sustaining competitive growth amidst market challenges.
