Consumer goods giant Unilever has reported a period of strong growth as demand for its so-called power brands surged.
In a trading update for the third quarter of 2024, the company said it had recorded underlying sales growth of 4.5 per cent compared to the prior year across its main divisions, with volume growth of 3.6 per cent.
Power brands, which include the likes of Dove, Liquid I.V., Comfort and Magnum, account for around three quarters of group revenue. These brands reported underlying sales growth of 5.4 per cent and volume growth of 3.6 per cent.
Disposals detracted 1.5 per cent from top line growth, with currency detracting another 2.8 per cent.
Unilever’s sale of its ice cream business
In March, the company announced it would be divesting or spinning off its ice cream business.
In its third-quarter update, Unilever said this separation will be completed by the end of 2025. The company said it had completed the new legal entity setup, the standalone operating model, and the carve-out financials.
The group also updated the market today on its cost-cutting and simplification programme.
Unilever said it had communicated internally on the changes planned within the productivity programme in July and has started the implementation in the countries where the “consultation with the respective works councils completed.”
Commenting on the company’s third-quarter results, Unilever boss Hein Schumacher said: “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.”