Unilever delivered another quarter of strong topline growth

Following the release of this trading statement on 27 April 2023 at 7:00 AM (UK time), there will be a live webcast at 8:00 AM available on the website www.unilever.com/investor-relations/results-and-presentations/latest-results.

A replay of the webcast and the slides of the presentation will be made available after the live meeting.

Beauty & Wellbeing 

21% of Q1 turnover

Beauty & Wellbeing underlying sales grew 9.3% with 6.5% from price and 2.6% from volume.

Hair Care grew across all regions, delivering high single-digit growth and also returned to positive volume growth, helped by the continued rollout of our Sunsilk relaunch. TRESemmé grew strongly and the new Clear Anti Hair Fall in China continued to perform well.

Core Skin Care delivered mid single-digit growth, driven by strong performances in South Asia and South East Asia which were partially offset by double-digit decline in North Asia where sales of AHC were down. Vaseline and Pond’s delivered double-digit growth, supported by innovations with additional consumer benefits, such as the premium Gluta-Hya serum which revitalises skin overnight and boosts skin elasticity.

Prestige Beauty and Health & Wellbeing delivered another quarter of double-digit growth with strong contributions from Paula’s Choice, Hourglass and Liquid IV.

Personal Care 

23% of Q1 turnover

Personal Care underlying sales grew 12.7% with 9.4% from price and 3.0% from volume. Growth was broad-based with strong growth in Latin America, South Asia, Europe and North America.

Deodorants grew high double-digit driven by Europe and the Americas, where volumes were boosted by a recovery in service levels and associated pipeline fill. Rexona accelerated its strong performance, helped by our premium and superior 72-hour protection technology. We launched our Axe Fine Fragrance range, which combines odour protection with fine fragrances and freshness, contributing to double-digit growth for the brand.

Skin Cleansing grew high single-digit driven by Latin America and South Asia. In the United States, we launched our first  Dove 24-hour Renewing Micromoisture body wash which actively regenerates the skin’s moisture for healthy-looking skin​. Lux grew double-digit, still benefiting from the relaunch of its bars which provide a further improved skin care experience, delivering glow and flawless complexion.

Oral Care achieved mid single-digit growth which was led by strong pricing. Close Up grew double-digit with good performance in South Asia and Africa.

Home Care

22% of Q1 turnover

Home Care underlying sales grew 10.2% driven by 13.4% price, partially offset by negative volume of  (2.8)%. Volumes were negative in most markets as pricing remained high.

Fabric Cleaning grew double-digit with capsules and liquids performing well as we continued to drive premiumisation. We launched plastic-free packaging for our capsules in France and the United Kingdom under OMO. Fabric Enhancers grew high single-digit driven by price. Comfort grew strongly in Latin America and Turkey.

Home & Hygiene grew mid single-digit, with double-digit price partially offset by negative volume. Domestos grew double-digit and we launched new Power Foams which expand once applied to eliminate germs, even in the hardest-to-reach places. The Air Wellness business declined in the quarter as the global market continued to slow.

Nutrition

23% of Q1 turnover

Nutrition underlying sales grew 11.9 % with 13.4% from price and (1.3)% from volume.

Dressings delivered another quarter of strong price-driven growth and positive volume, led by Hellmann’s with communication centered around our “Make taste not waste” campaign.

Scratch Cooking Aids grew high single-digit. Growth in Europe and North America was price-led with negative volume.  Africa, where we relaunched fortified Knorr stock cubes to address iodine and zinc deficiencies, grew double-digit with positive price and volume while North Asia declined.

Unilever Food Solutions grew double-digit as China recovered throughout the quarter and other markets continued to deliver strong growth.

Ice Cream

11% of Q1 turnover

Ice Cream underlying sales grew 6% with 10.5% from price, partially offset by negative volume of (4.1)%.

In-home Ice Cream grew low single-digit but volumes declined as consumption remained impacted across regions by the discretionary nature of the category in a heavily inflationary environment. Out-of-home Ice Cream grew double-digit with positive price and volume in anticipation of a good ice cream season.

Magnum grew strongly, supported by our new Starchaser and Sunlover limited edition innovation, while the Heart brand grew mid single-digit with negative volume. Cornetto grew double-digit, helped by the launch of limited edition variants.

Asia Pacific Africa

46% of Q1 turnover

Underlying sales growth was 9.9% with 9.5% from price and 0.3% from volume.

South Asia continued to grow double-digit driven by price with positive volume. China grew low single-digit with a mix of volume and price as growth improved throughout the quarter when Covid restrictions eased. Underlying sales in Indonesia were broadly flat with pre-planned reductions in stock-in-trade levels again affecting volumes. Philippines grew double-digit while Vietnam grew mid single-digit. Turkey delivered another year of broad-based, double-digit growth with positive volume and price in a difficult and hyperinflationary environment. Africa grew double-digit driven by price while volumes declined.

The Americas

36% of Q1 turnover

Underlying sales grew 8.1% in North America with 7.2% from price and 0.9% of volume. Nutrition grew double-digit with strong price and negative volume, driven by Dressings while Personal Care growth was led by a very strong performance in Deodorants. Good growth in Beauty & Wellbeing was supported by Prestige Beauty and Health & Wellbeing growing double-digit. Ice Cream grew low single-digit with negative volume.

Underlying sales growth in Latin America grew double-digit at 18.7% with price growth of 18.4% and positive volume growth of 0.2%. Growth was broad based across all Business Groups. Brazil grew high double-digit with positive volume driven by Home Care and Personal Care. In a difficult environment, we continued to benefit from a portfolio that spans different price points which helped deliver volume growth in Mexico and Argentina despite strong double-digit price growth.

Europe

18% of Q1 turnover

Europe delivered strong underlying sales growth of 9.2% with 12.6% from price and (3.0)% from volume. Personal Care, Nutrition and Beauty & Wellbeing delivered double-digit growth, while Home Care and Ice Cream only grew modestly as volumes declined. Growth was broad-based across countries and helped by a softer prior year comparator. The United Kingdom, Germany and Spain achieved double-digit growth, driven by strong performances of Nutrition and Personal Care.

As previously disclosed, Unilever is involved in a number of ongoing investigations by national competition authorities, including those of France, Portugal and South Africa. These proceedings and investigations are at different stages and concern different product markets. Where appropriate, provisions are made and contingent liabilities disclosed in relation to such matters.

Ongoing compliance with competition laws is of key importance to Unilever. It is Unilever’s policy to co-operate fully with competition authorities whenever questions or issues arise. At the same time, we are vigorously defending Unilever when we feel that allegations are unwarranted. The Group continues to reinforce and enhance its internal competition law compliance programme on an ongoing basis.