Unilever sales rise as CEO outlines growth plans

Unilever has reported a 9.1% increase in sales for the first half of 2023, driven by all business groups.

The Beauty & Wellbeing division saw underlying sales rise 9.1%. Volume growth of 3.8% was led by continued double-digit growth in Prestige Beauty and Health & Wellbeing, as well as “strong” growth in Haircare.

Vaseline, TRESemmé, Paula’s Choice, Dermalogica and Hourglass were among the best performers during the period.

The Personal Care division reported underlying sales up 10.8%, driven by price and 3.2% volume growth with “strong” sales of Deodorants, including Dove.

Homecare sales grew 8.4%, whilst Nutrition was up 10.4%.

Unilever’s billion+ Euro brands, accounting for 55% of group turnover, delivered underlying sales growth of 10.8%.

Overall turnover increased 2.7% to £26.2 billion (€30.4 billion), which includes a currency impact of -3.2% and -2.7% from disposals net of acquisitions.

Underlying operating profit was $4.4 billion (€5.2 billion), up 3.3% against the prior year. Underlying operating margin improved by 10bps to 17.1%.

Looking ahead, the group expects sales growth for the full year to be above 5%.

It also anticipates a “modest improvement” in underlying operating margin, reflecting higher gross margin and increased investment behind Unilever’s brands.

Hein Schumacher, CEO of Unilever, said: “Unilever’s performance in the first half highlights the qualities that attracted me to the business: an unmatched global footprint, a portfolio of great brands and a team of talented people.

“The task ahead is to leverage these core strengths – supported by our simplified operating model – to drive improved performance and competitiveness. This is our absolute priority and it will mean bringing greater focus and sharper execution, with science-backed innovations and investment behind our brands.

“This opportunity to step up our performance and unlock our full potential makes it an exciting time to lead Unilever.”