Unilever reports 4.4% growth in sales in Q1 2024 despite regional challenges 

UK – Unilever, the multinational fast consumer goods company, has revealed its financial results for the first quarter of 2023, showcasing a robust performance despite facing regional challenges.  

The company reported 4.4 percent growth in sales and a 2.2 percent growth in volume, with all five of its Business Groups experiencing positive growth.  

These results underscore Unilever’s resilience in navigating market dynamics and its commitment to driving sustainable growth. 

According to its financial report, Unilever’s turnover increased to €15 billion (US$16.1 billion), representing a 1.4 percent growth compared to the previous year. While currency fluctuations and disposals impacted the figures, the company’s core performance remained strong. 

Hein Schumacher, CEO of Unilever, emphasized the role of the company’s power brands in driving growth, stating, “Unilever delivered improved volume growth in the first quarter. This was driven by our power brands, which saw underlying sales growth of more than 6 percent, with strong performances from Dove, Knorr, Rexona, and Sunsilk.” 

Unilever’s focus on its power brands, which represent 75 percent of its turnover, has contributed to a 3.8 percent increase in volume. Brands like Ben & Jerry’s, Cornetto, and Magnum have continued to resonate with consumers, driving growth across markets.  

Schumacher outlined the company’s Growth Action Plan, which prioritizes delivering higher-quality growth, streamlining operations, and enhancing performance across all business segments. 

One significant development highlighted in the report is the separation of the Ice Cream category and the launch of a productivity program aimed at driving focus and reducing costs.  

Despite a decline in volumes, Unilever remains optimistic about the Ice Cream segment’s performance as the main ice cream season approaches, supported by operational changes and product innovations. 

During the period, the Ice Cream category grew by more than 2 percent as a result of price changes, while volumes declined by close to 1 percent.  

In terms of regional performance, Latin America, Turkey, and Africa stood out with strong sales volume, while China witnessed mid-single-digit growth driven by Unilever Food Solutions.  

However, challenges persisted in certain markets, such as Indonesia, where a consumer boycott affected sales. Despite these challenges, emerging markets as a whole saw a robust underlying sales growth of 5.4 percent. 

In developed markets, Unilever reported a 3 percent growth in underlying sales, with North America recording a 1.4 percent positive volume growth and Europe experiencing growth primarily driven by price.  

The UK, France, and Eastern Europe showed signs of recovery with a return to volume growth, signaling a positive trajectory for the region. 

Overall, Unilever remains confident in its ability to deliver sustained volume growth and positive mix as it continues its transformation journey.  

With a focus on innovation, brand investment, and operational efficiency, the company is poised to navigate challenges and capitalize on opportunities in the evolving consumer landscape. 

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