Unilever has reported significant growth driven by its leading brands.
- The company achieved a 4.5% increase in underlying sales year-on-year.
- Key brands like Dove and Magnum contributed to a 5.4% sales growth.
- Volume growth also rose by 3.6% across major divisions.
- Unilever plans to finalise its ice cream business separation by 2025.
Unilever, a major player in the consumer goods market, reported robust growth for the third quarter of 2024. This was primarily driven by a surge in demand for its prominent brands. The company saw an underlying sales growth of 4.5% compared to the same period last year, with a notable increase in volume growth of 3.6%, according to the latest updates.
The impressive performance was chiefly attributed to Unilever’s ‘power brands’, such as Dove, Liquid I.V., Comfort, and Magnum. These brands, which represent approximately three-quarters of the group’s total revenue, achieved a sales growth of 5.4% and a volume growth of 3.6%. Despite these gains, total sales revenue was reported at €15.2 billion (£12.7 billion), remaining flat year-on-year due to the impacts of disposals and currency exchange fluctuations.
In a strategic shift, Unilever reiterated its plan to either divest or spin off its ice cream segment, with completion targeted by the end of 2025. The company has also made significant progress in setting up a new legal entity, operational framework, and financial structure for this standalone business.
The cost-cutting and simplification initiatives, initially shared internally, are well underway. Unilever CEO Hein Schumacher highlighted the company’s continued positive trajectory, stating, “We have delivered a fourth consecutive quarter of positive, improved volume growth, with each of our business groups driving higher volumes year-on-year.” Schumacher also mentioned Unilever’s focus on fewer, yet larger innovations to amplify market impact, supported by increased investment in brand development.
As the company accelerates its transformation, it remains on course to meet its 2024 objectives. Schumacher expressed confidence in the strategic measures being implemented: “We are on track to deliver our 2024 outlook and are confident that the steps we are taking will help to transform Unilever over time into a consistently higher performing business.”
Unilever’s strategic initiatives and strong brand performance position it for sustained success amidst economic uncertainties.
