{"id":77506,"date":"2024-03-02T15:00:00","date_gmt":"2024-03-02T13:00:00","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=77506"},"modified":"2025-12-17T16:14:50","modified_gmt":"2025-12-17T14:14:50","slug":"unilever-growth-resumes-but-competitiveness-disappoints","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/es\/unilever-growth-resumes-but-competitiveness-disappoints\/","title":{"rendered":"Unilever: Growth resumes, but competitiveness disappoints"},"content":{"rendered":"
Unilever returned to volume growth in 2023 as price growth dropped, but new boss Hein Schumacher said the group\u2019s competitiveness remained \u201cdisappointing\u201d.<\/p>\n\n\n\n
The major manufacturer of cosmetics and consumer goods saw its underlying sales grow by 7%, with positive volumes of 0.2% and 6.8%. Underlying price growth dropped from 10.7% in the first quarter to 2.8% in the fourth quarter, due to lower net material inflation in the second half. Nutrition and ice cream experienced the highest input cost inflation in 2023, which led to higher pricing. Growth from the group\u2019s 30 \u201cpower brands\u201d was 8.6%, with beauty & wellbeing and personal care showing strong volume growth throughout 2023. Home care also demonstrated positive volume growth in the second half.<\/p>\n\n\n\n<\/figure>\n\n\n\n
Unilever\u2019s power brands<\/strong><\/h2>\n\n\n\n
Unilever Plc has reduced its portfolio aggressively over the last few months after new CEO Hein Schumacher took over in July and prioritised 30 \u201cpower brands\u201d in the company\u2019s mission to boost growth. These power brands include Dove, Lux, Pond\u2019s, Surf, Sunsilk, Lifebuoy, Horlicks, Vaseline, Knorr, Rexona, Closeup and Pepsodent.<\/p>\n\n\n\n
Volume growth was higher 1.8%, with these 30 power brands being responsible for 3.9% of the volume growth. The 37% percentage of business winning market share on a 12 month-basis was \u201cdisappointing.\u201d The weak performance reflected share losses to private label in Europe, consumer changes to super-premium segments in North America and a significant reduction of unsuccessful SKUs globally.<\/p>\n\n\n\n
Beauty & wellbeing\u2019s sales increased by 8.3%, with strong volume growth of 4.4%. Personal care sales were up 8.9% due to the robust sales growth of deodorants. Home care sales also increased 5.9%, with positive volumes in emerging markets balanced by a drop in Europe. Nutrition sales came in at 7.7%, with volumes down 2.2% due to increased costs and a tough European market. Ice cream sales came in at 2.3%, which was disappointing due to the downtrading in the in-home channels.<\/p>\n\n\n\n
Emerging market (58% of group turnover) sales came in at 8.5%, while sales in developed markets increased 4.8% driven by a 6.7% rise in prices and a 1.8% decline in volumes.<\/p>\n\n\n\n
North America also showed higher growth of 5.8% with 2.5% from volume and 3.3% from price. In Europe, underlying sales growth was 4.1%, mainly 12.8% from price and a volume drop of 7.7%.<\/p>\n\n\n\n
Total turnover was \u20ac59.6bn, which was down 0.8% compared to the previous year, including 5.7% foreign exchange translation and 1.7% from disposals net of acquisitions.<\/p>\n\n\n\n
The group\u2019s underlying operating profit rose 2.6% to \u20ac9.9 billion, with underlying operating margin rising 60bps to 16.7%.<\/p>\n\n\n\n
Gross margin increased by 200bps to 42.2% with an increase of 330bps in the second half as Unilever managed to reduce net material inflation of \u20ac1.8bn by improving productivity, price and mix and boosting brand and marketing investment.<\/p>\n\n\n\n
CEO Hein Schumacher commented: \u201cToday\u2019s results show an improving financial performance, with the return to volume growth and margins rebuilding. However, our competitiveness remains disappointing and overall performance needs to improve. We are working to address this by improving our execution to unlock Unilever\u2019s full potential.\u201d<\/p>\n\n\n\n
He said that in October when they established a Growth Action Plan, the focus fell on higher-quality growth, increasing productivity and simplicity, and focusing on strong performance.<\/p>\n\n\n\n
He noted that the company managed to increase the investment for their 30 power brands, pushed for portfolio transformation, and were dedicated to delivering on performance with clear targets across the whole organisation. While they are at the early stages of this endeavour, Schumacher recognised the work that has to be done and the speed and urgency with which they are working in order to move Unilever into the next level as a steadily higher performing business.<\/p>\n\n\n\n
Looking ahead, Unilever forecasts underlying sales growth for 2024 to be within the range of 3% to 5%, with volume and price being more balanced. It also anticipates underlying operating margin to improve for the full year through the expansion of gross margin expansion, an increase in productivity and net material inflation.<\/p>\n\n\n\n<\/figure>\n\n\n\n
History<\/strong><\/h2>\n\n\n\n
Unilever PLC is a British multinational company manufacturing and supplying fast-moving consumer goods. It was founded on 2 September 1929 after the merger of British soap maker Lever Brothers with Dutch margarine producer Margarine Unie.<\/p>\n\n\n\n
These holding companies oversee around 500 companies worldwide that cover anything from manufacturing and selling soaps, to making food, and other products for household consumption. Both companies\u2019 boards of directors are identical in membership, and mutual agreements balance dividends on ordinary capital, so that the companies are unitary in fact.<\/p>\n\n\n\n
The modern Unilever\u2019s origins can be traced back to three companies founded in the 19th century. In the Netherlands the Jurgens family was in the dairy business for many years and exported butter to Britain. The demand for expensive butter led the company to start producing margarine in 1871. Another family in Oss, the Van den Berghs, also began making margarine in the 1870s. In 1885, in Britain, we have the founding of Lever Brothers who focused on the making and selling of soap. The three businesses expanded, with the Levers into continental Europe and overseas, and the Jurgens and Van den Berghs expanding into Britain and other parts of the world. By the First World War the British were also making margarine, and the Dutch were also producing soap, since both products were made from similar ingredients: oil and fat.<\/p>\n\n\n\n
In 1927, Margarine Unie NV in the Netherlands and Margarine Union Limited in Britain merged with common directors and balanced dividends and capital values. In 1929, Lever Brothers joined the group, and the twin companies changed their name to Unilever.<\/p>\n\n\n\n<\/figure>\n\n\n\n
After World War II, Unilever started producing detergents and other synthetic products. In the 1980s it bought Chesebrough-Pond\u2019s, Inc., and other makers of personal-care products. In 1989, Unilever became a big manufacturer of perfumes and cosmetics and bought popular brands such as Calvin Klein, Inc., Faberge Inc., and Elizabeth Arden. Unilever Cosmetics International was sold in 2005, while its specialty-chemicals businesses were sold in 1997.<\/p>\n\n\n\n
Unilever\u2019s sales are mainly from home products such as soaps and detergents, margarines, cooking fats, salad dressings, ice cream, toiletries, packaged and processed foods, and beverages. In 2000, the company bought Bestfoods for $20 billion, which pushed Unilever to the top as one of the largest food companies in the world.<\/p>\n\n\n\n
Descargo de responsabilidad: Esta informaci\u00f3n no debe considerarse asesoramiento o recomendaci\u00f3n sobre inversiones, sino una comunicaci\u00f3n de marketing. IronFX no se hace responsable de datos o informaci\u00f3n de terceros en esta comunicaci\u00f3n, ya sea por referencia o enlace.<\/i><\/p>","protected":false},"excerpt":{"rendered":"
Unilever returned to volume growth in 2023 as price…<\/p>\n
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