Unilever, the maker of Ben & Jerry’s ice cream and Marmite, has announced its third quarter results with underlying sales growth of 4.5% with volume growth of 3.6%
Power Brands grew by 5.4% and the full-year outlook unchanged – Unilever is guiding for underlying sales growth of 3 to 5% in FY24, with an underlying operating margin of at least 18%
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, said, “This is another solid performance from Unilever with volume growth accelerating, and an improved performance in ice cream. It provides further encouragement that Hein Schumacher’s ‘Action Plan’ is working.
The market environment for consumer goods companies is challenging. China’s economy is weakening and the high level of inflation in recent years means the appeal of private label brands has arguably never been greater. Against this backdrop it is pleasing to see Unilever deliver another quarter of healthy volume growth, with Power Brands leading the way and a much better performance in Europe.
Hein Schumacher’s work is certainly not done. Indonesia has been a notable problem child for years, registering a very disappointing 18% sales decline in the quarter. Tackling this must be a priority. In addition, there is a long way to go on productivity and simplification to make Unilever a leaner, meaner business.
Nevertheless, operational execution is improving and there is a much greater sense of urgency and dynamism. This provides growing confidence that Unilever is now on the right track.”
