- Unilever reported stronger consumer demand, improving sales volumes, and raised its outlook for the remainder of the financial year.
- Unilever delivered its best quarter for volumes in over a decade and upgraded its annual forecast, as consumers reached for brands like Vaseline, Dove, and Cif despite household budget concerns.
- Second-quarter volumes rose by 5.5%, powered by strength in key markets like India, Indonesia, and Latin America, helping it comfortably beat underlying sales growth estimates.
- Underlying sales growth for the quarter ended June 30 was 5.8%, compared with analysts' average expectation of 4.3%.
- Higher product volumes, strong brand performance, resilient emerging market demand, and continued operational discipline contributed to the improved outlook.
- Sales growth is forecasted at 4%-5% in the second half, driven by higher pricing.
- Unilever's food business is expected to see growth accelerate in the second half of the year, led by innovation and improved developed market performance.
- Unilever performed worst in Europe in the first half of the year, where sales fell by 0.9%, against growth of 7.6% in Latin America and 8% in India.
Unilever's recent performance highlights a significant rebound in consumer demand, with second-quarter volumes rising by 5.5%. The company upgraded its sales forecast, expecting 4%-5% growth in the second half, driven by strong brand performance in Home Care, Beauty, and Personal Care segments.1236
Despite challenges in its food business, which saw a 0.9% decline in Europe, Unilever's overall underlying sales growth reached 5.8%, surpassing analysts' expectations of 4.3%. Key markets like India, Indonesia, and Latin America contributed significantly to this growth, with 7.6% growth in Latin America and 8% in India.48
CEO Fernando Fernandez emphasized the company's commitment to transforming its portfolio, stating, "our brands are stronger [and] our execution is sharper." The firm is also navigating a challenging macroeconomic environment but remains confident in its upgraded outlook due to consistent performance and operational discipline.
Unilever's food business, which is set for a £33bn spin-off, is expected to improve in the second half, aided by innovation and better performance in developed markets. However, the gross margin in this segment has been impacted by rising commodity costs and increased investment in products.7
“Unilever's second-quarter underlying sales growth reached 5.8%, surpassing the 4.3% expected by analysts, thanks to strong performance in key markets like India and Latin America. CEO Fernando Fernandez emphasized that the company's portfolio transformation has strengthened its brands and execution, positioning them well for future growth.”
Kalkine Media
City AM
