Key Unilever beauty ops see H1 sales rising

By

Sandra Halliday

Published
Jul 25, 2024

Unilever has reported its first-half results with the giant multinational saying “innovation and brand investment [are] driving faster volume growth”.

It saw underlying sales growth (USG) of 4.1%, with volumes up 2.6% and its Power Brands that account for around 75% of turnover led the way with 5.7% USG and volumes up 4%.

Overall turnover rose 2.3% to €31.1 billion with the second quarter up 2.2% at €16.1 billion. And the company expects full-year USG to be within its multi-year range of 3%-5%, with most of the growth being driven by volume.

Ads

Looking at key divisions within the company, it said that Beauty & Wellbeing USG rose 7.1% to reach €6.5 billion in the first half and increased 6.8% to €3.4 billion in Q2. The unit accounts for 21% of total turnover.

It was “another strong performance”, driven by volume that was up 5.5% and price up 1.5%. Power Brands led this growth with USG of 11.3%.

Within that, Hair Care delivered mid-single-digit growth with positive volume and price. Its largest haircare brand, Sunsilk, grew in double-digits, supported by innovations across Latin America and the continued success of its 2023 relaunch. Dove grew in high-single-digits, led by volume growth following the launch of Scalp + Hair Therapy, for improved scalp health and hair density. Clear and TRESemmé grew well with the continued expansion of its patented anti-dandruff shampoo and its new Lamellar Shine range.

Core Skin Care grew in mid-single-digits led by strong volume growth in its top brands. Vaseline grew in strong double-digits supported by its premium ranges, including Radiant X and Gluta Hya, which continue to be rolled out to new markets. And Pond's continued to deliver high-single-digit growth led by volume, following its 2023 relaunch.

The combined Health & Wellbeing and Prestige Beauty operation that’s part of the Beauty & Wellbeing division delivered double-digit growth for the 14th consecutive quarter, although there was softer growth in Prestige Beauty that reflected a slowdown in the US beauty market. 

That said, Tatcha and Hourglass grew in double-digits, although Paula's Choice was affected by the market slowdown.

Underlying operating profit for the division was €1.3 billion, up 11% versus the prior year. And the underlying operating margin increased 110bps to 20% driven by gross margin improvement, which supported a step-up in brand and marketing investment.

Another giant division, Personal Care, which accounts for 22% of total turnover, saw USG rising 5.6% to €7 billion in the first half and a stronger 6.4% to €3.5 billion in Q2.

It delivered “balanced growth” with 2.9% coming from volume and 2.6% from price. Performance was led by the Power Brands with 7% USG.

Deodorants continued to deliver double-digit growth, while Skin Cleansing grew in low-single-digits. Growth was tempered by deflation in India and market challenges in Indonesia. Dove delivered high-single-digit growth with good growth in Dove Men+Care. Europe grew in double-digits with mid-single-digit volume supported by Dove's Body Wash relaunch. In the US, it launched a premium range of Dove Body Wash infused with skincare serums including hyaluronic acid, collagen and vitamin C.

The division’s underlying operating profit was €1.6 billion, up 16% versus the prior year.