Dove and Marmite maker Unilever has announced an uptick in profit as its restructuring plan starts to pay off.
Turnover at the FTSE 100 consumer giant ticked up 1.9 per cent to €60.8bn (£50.71bn) in 2024, slightly above analysts’ expectations of a 1.6 per cent rise.
Sales grew by 4.2 per cent, largely driven by gains in the beauty and personal care markets while underlying operating profit grew 12.6 per cent to €11.2bn.
Underlying earnings per share grew 14.7 per cent to €2.98.
The results signal boss Hein Schumacher’s growth plan has begun to pay off after a challenging period in which the giant faced lower returns as shoppers tightened their belts amid the cost of living crisis.
Operating profit fell 3.7 per cent to €9.4bn due to the cost of implementing and accelerating the growth plan, Unilever said.
Schumacher said the results “reflect a year of significant activity” as the company focuses on “transforming Unilever into a consistently higher performing business”.
Ben & Jerry’s separation
Last year, the Bovril owner announced it would spin off its ice cream arm, Ben & Jerry’s, and cut around 7,500 jobs to simplify the business.
The separation of Ben & Jerry’s is on track to be completed by the end of 2025, and the simplification program is progressing ahead of plan, Unilever said. However, it has faced rising restructuring costs to the tune of €850m.
Schumacher said the productivity plan was “helping to create a leaner and more accountable organisation”.
Unilever expects market growth, which slowed throughout 2024, to remain soft in the first half of 2025, with underlying sales growth at three to five per cent.
The company’s shares have responded well to Schumacher’s plan, with the share price up nearly 19 per cent in the last year and nearly five per cent in the last month.
Robinhood UK lead analyst Dan Lane said: “Throwing weight behind its core assets is exactly the strategy Unilever shareholders will be happy to see.
“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.
“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.”