Unilever, the household name behind brands like Dove and Marmite, has reported a profit increase as its restructuring efforts begin to bear fruit.
The FTSE 100 consumer behemoth saw a turnover rise of 1.9% to €60.8bn (£50.71bn) in 2024, slightly surpassing analyst expectations of a 1.6% increase, as reported by .
Sales surged by 4.2%, predominantly propelled by the beauty and personal care sectors, while underlying operating profit soared by 12.6% to €11.2bn. Underlying earnings per share also climbed by 14.7% to €2.98.
The positive financial results indicate that CEO Hein Schumacher's strategy for growth is starting to deliver results following a period where the company experienced diminished returns as consumers reined in spending due to the cost-of-living crisis.
Despite this, operating profit dipped by 3.7% to €9.4bn, attributed to the costs associated with implementing and accelerating the growth plan, according to Unilever.
Schumacher commented on the performance, stating that it "reflect a year of significant activity" and emphasised the company's commitment to "transforming Unilever into a consistently higher performing business".
In a move to streamline operations, last year Unilever announced plans to divest its ice cream division, Ben & Jerry’s, and reduce its workforce by approximately 7,500 roles.
The separation of Ben & Jerry’s is expected to be finalised by the end of 2025, with the simplification process reportedly advancing ahead of schedule.
However, the company has incurred rising restructuring expenses amounting to €850m.
Schumacher highlighted that the productivity initiative is "helping to create a leaner and more accountable organisation".
Unilever anticipates market growth, which decelerated throughout 2024, to continue being soft in the first half of 2025, with underlying sales growth projected at three to five per cent.
The firm's shares have reacted positively to Schumacher’s strategy, with a nearly 19 per cent increase in share price over the past year and almost five per cent in the previous month.
Robinhood º£½ÇÊÓƵ's lead analyst Dan Lane commented: "Throwing weight behind its core assets is exactly the strategy Unilever shareholders will be happy to see. " He added: "The more focused, leaner strategy only went live at the start of the year so the market will need to be patient for now but it’s a big step in the right direction."
Lane also suggested: "We could see disposals of more non-core assets throughout 2025, especially in the Foods category, as the firm is likely to step up spending in its Beauty & Wellbeing portfolio – the recent Wild acquisition is a good example of the direction of travel."
