Unilever, the multinational consumer goods company, has exceeded expectations for Q3 sales growth, thanks to its strong brand power and strategic pricing. Despite facing rising costs, Unilever was able to raise prices and maintain its full-year profit margin guidance. The company reported a 2.5% increase in underlying sales from July to September, driven by growth in key markets such as the US, India, China, and Turkey. The positive sales growth was mainly attributed to a 4.1% increase in prices, which more than compensated for the 1.5% decline in volumes. Unilever’s total turnover for the period reached €13.5 billion.

Within Unilever’s business segments, the Beauty & Personal Care division, its largest segment, saw a 2.6% increase in underlying turnover to €5.7 billion. Despite a 1.3% decline in volume, the division saw a 3.9% rise in value. Unilever reported strong growth in its skincare operations, particularly for its Vaseline brand, which experienced double-digit growth. Deodorants also saw mid-single-digit growth. However, sales for skin cleansing products declined overall, which was attributed to the high demand driven by the Covid-19 pandemic in the previous year.

In the haircare segment, Unilever achieved low-single-digit growth with negative volumes. However, its Dove hair therapy innovation in North America, which incorporates skincare ingredients into hair products, continued to perform well. Unilever’s Prestige Beauty brands also experienced double-digit growth and demonstrated their commitment to sustainability by launching more eco-friendly products. For example, Hourglass, a vegan brand under Unilever’s prestige portfolio, introduced customizable and refillable Curator eyeshadow palettes.

To combat commodity inflation, Unilever increased prices in various categories and regions within its beauty division. Despite the challenges of rising costs, the company’s strong performance and strategic pricing enabled it to maintain its profitability. The positive sales growth in key markets, along with the success of its skincare and Prestige Beauty brands, highlights Unilever’s ability to adapt and thrive in a competitive consumer goods industry.

Useful links:
Unilever Official Website
Unilever’s Commitment to Sustainability