Unilever sales rise 4.5% thanks to boost from ‘power brands’

Unilever reported a better-than-expected increase in sales during its third quarter as the FTSE 100 company continued its turnaround plan.
The consumer goods group, which owns brands including Marmite and Dove Soap, posted underlying sales growth of 4.5 per cent during the third quarter, its biggest quarterly rise in sales in three and a half years.
Slower price rises and new product innovations helped quarterly volume growth increase by 3.6 per cent, beating City forecasts of 3.2 per cent.
• Unilever hopes power brand will be liquid gold in the UK
It marks the latest chapter in a turnaround effort from Hein Schumacher, a restructuring expert who was installed last year as its new chief executive replacing Alan Jope, to oversee a revival of the business. He had been scouted by Nelson Peltz, the billionaire activist investor whose firm has a stake in Unilever.
Consumers were lured back to Unilever’s “power brands” which include Dove, Comfort and Magnum. This helped underlying sales growth for the division rise 5.4 per cent, while volume growth increased by 4.3 per cent.
Yet, quarterly turnover for Unilever remained flat at £15.2 billion as disposals and currency headwinds weighed on the group.
Schumacher said: “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.”
He added that the group’s separation of its £15 billion ice-cream business was “on track” and was expected to be completed by the end of 2025.
The consumer goods giant said that it was keeping its full-year outlook unchanged. Unilever expects to report underlying sales growth of between 3 and 5 per cent and an underlying operating margin of at least 18 per cent.
Unilever, which has a market cap of £115.5 billion, is one of the world’s biggest consumer goods firms. Its products include Lipton tea, Hellmann’s mayonnaise and Knorr stock cubes.
• Unilever’s Russia exit strategy is better late than never
Earlier this month Unilever announced that the group had sold its Russian subsidiary to a local manufacturing group for a reported €520 million, following repeated criticism for not ditching operations in the court after its invasion of Ukraine.