| Unilever Trading Statement – First Quarter 2024 |
| Improved volume growth led by Power Brands |
| First Quarter 2024 | |||
| (unaudited) | USG | Turnover | vs 2023 |
| Unilever | 4.4% | €15.0bn | 1.4% |
| Beauty & Wellbeing | 7.4% | €3.2bn | 3.1% |
| Personal Care | 4.8% | €3.4bn | 0.4% |
| Home Care | 3.1% | €3.2bn | 0.6% |
| Nutrition | 3.7% | €3.4bn | 1.1% |
| Ice Cream | 2.3% | €1.8bn | 2.7% |
First Quarter highlights
• Underlying sales growth of 4.4%, with volume growth increasing to 2.2%
• All five Business Groups reporting underlying sales growth, led by Beauty & Wellbeing
• Turnover increased 1.4% to €15.0 billion with (2.0)% impact from currency and (0.9)% from net disposals
• Power Brands (75% of turnover) leading growth with 6.1% USG, driven by a 3.8% increase in volume
• Announced separation of Ice Cream and launch of major productivity programme to accelerate the Growth Action Plan
• 2024 outlook unchanged with underlying sales growth of 3% to 5% and a modest improvement in underlying operating margin
Chief Executive Officer statement
“Unilever delivered improved volume growth in the first quarter. This was driven by our Power Brands which saw underlying sales growth of 6.1%, with strong performances from Dove, Knorr, Rexona and Sunsilk.
We are implementing the Growth Action Plan at speed, focused on three clear priorities: delivering higher-quality growth, creating a simpler and more productive business, and embedding a strong performance focus. This is underpinned by our commitment to do fewer things, better and with greater impact.
In March, we announced the separation of Ice Cream and the launch of a comprehensive productivity programme. These actions will drive focus, faster growth and reduce costs. Dedicated project teams are progressing the work at pace.
Unilever’s transformation is at an early stage, but we have increasing confidence in our ability to deliver sustained volume growth and positive mix as we accelerate gross margin expansion.”
Hein Schumacher
| Outlook |
Our 2024 guidance is unchanged. We expect underlying sales growth (USG) for 2024 to be within our multi-year range of 3% to 5%, with an increasing contribution from volume growth.
We are confident of delivering a modest improvement in underlying operating margin for the full year, reflecting higher gross margin and increased investment behind our brands.
| First Quarter Review: Unilever Group |
| (unaudited) | Turnover | USG | UVG | UPG | Acquisitions | Disposals | Currency | Turnover change |
| First Quarter | €15.0bn | 4.4% | 2.2% | 2.2% | 0.4% | (1.3)% | (2.0)% | 1.4% |
Performance
Underlying sales growth in the quarter was 4.4%, with balanced volume and price growth. Underlying volume growth increased to 2.2% from 1.8% in Q4 2023, while underlying price growth of 2.2% moderated slightly from 2.8% in the previous quarter. The Power Brands continued to perform strongly with 6.1% underlying sales growth, underpinned by volume growth of 3.8%.
Beauty & Wellbeing grew underlying sales by 7.4%, with volume growth of 5.6% driven by continued double-digit growth from Health & Wellbeing and Prestige Beauty. Personal Care grew 4.8% with 1.4% from volume despite a particularly strong prior year comparator. Home Care underlying sales increased 3.1%, with 4.3% volume growth more than offsetting the negative price growth reflecting commodity cost driven deflation in some of our markets. Nutrition grew underlying sales by 3.7%, with volumes sequentially improving to (0.4)% from (1.1)% in Q4. Ice Cream grew 2.3%, led by price as volumes declined (0.9)%. As we move into the main ice cream season, Ice Cream’s performance will be supported by the operational changes that have been made to drive improved productivity, product rationalisation and investment behind significant innovations.
Emerging markets grew underlying sales 5.4%, with 3.9% from volume. Latin America, Turkey and Africa continued their momentum from 2023 and delivered strong sales growth with positive volumes. Sales in China grew mid-single digit with good volumes, particularly in Unilever Food Solutions. South Asia growth was driven by volume, while input cost deflation led to further negative price growth in India. South East Asia was impacted by a sales decline in Indonesia, reflecting the continued, but less material, impact of some Indonesian consumers avoiding multinational brands in response to the geopolitical situation in the Middle East.
Underlying sales in developed markets grew 3.0%, with volumes almost flat at (0.3)%. North America delivered sales growth of 3.6%, with positive volume growth at 1.4% driven by continued strong performances of Health & Wellbeing and Prestige Beauty. In Europe, underlying sales growth was 4.0%, driven by price. Volume declined 1.5%, but sequentially improved with a return to volume growth in the United Kingdom, France and Eastern Europe, as price growth continued to moderate from the peak in Q2 2023.
Turnover was €15.0 billion, up 1.4% versus the prior year, including (2.0)% from currency and (0.9)% from disposals net of acquisitions.
Capital allocation
With our full year results in February 2024, we announced that the Board had approved a share buyback programme of up to €1.5 billion to be conducted during 2024, which we expect to commence in the second quarter. The quarterly interim dividend for the first quarter is maintained at €0.4268.