Consumer goods titan Unilever has announced a period of robust growth, driven by surging demand for its so-called power brands.
In its Q3 2024 trading update, the firm reported an underlying sales growth of 4.5 per cent year-on-year across its main divisions, accompanied by a volume growth of 3.6 per cent, as reported by .
Power brands, including Dove, Liquid I. V., Comfort and Magnum, which makeup about three quarters of group revenue, saw underlying sales growth of 5.4 per cent and volume growth of 3.6 per cent.
However, despite the strong underlying growth, overall sales were reported at €15.2bn (£12.7bn), flat compared to the same period in 2023 and up 1.3% for the nine months ending September.
Disposals and currency fluctuations detracted 1.5 per cent and 2.8 per cent respectively from top line growth.
Unilever’s sale of its ice cream business
In March, Unilever revealed plans to either divest or spin off its ice cream business.
In its latest quarterly update, the company confirmed that this separation will be finalised by the end of 2025. It also stated that it had completed the new legal entity setup, the standalone operating model, and the carve-out financials.
The group also provided an update on its cost-cutting and simplification programme today.
Unilever has revealed updates on its productivity programme, initially communicated internally in July, with implementation underway in nations where consultations with respective works councils are complete.
Upon discussing the third-quarter results, Unilever CEO Hein Schumacher remarked: "We have delivered a fourth consecutive quarter of positive, improved volume growth, with each of our business groups driving higher volumes year-on-year."
"Underlying sales grew 4.5%, led by our Power Brands, with particularly strong performances from Dove, Liquid I.V., Comfort and Magnum. Price growth continued to moderate in line with our expectations."
"We are still in the early stages of transforming our performance as we execute the growth action plan at pace focused on doing fewer things, better and with greater impact. We are starting to see the positive impact from scaling fewer, bigger innovations across our markets supported by increased brand investment. We are taking decisive actions, where we see operational or market challenges to ensure we are well positioned for consistent and improved performance. As part of the group's overall transformation, we are implementing a comprehensive productivity programme and the separation of Ice Cream, both of which are progressing as planned."
"We are on track to deliver our 2024 outlook and are confident that the steps we are taking will help to transform Unilever over time into a consistently higher performing business."
