FMCG giant Unilever In the first half of the year, it was “strong”, and while price growth accelerated in the second quarter, the underlying sales growth was 5.4% (4% in quantity and 1.3% in price).
That said, Group-wide sales were up only 0.3%, including a 1.4% positive impact from acquisitions and a 6.1% negative impact from currency-related items. In addition, underlying earnings per share fell 2%, including a 6.3% negative impact from currencies.
Anglo-Netherlands company said, “We are making good progress on the strategic choices outlined earlier this year, including developing our portfolio into high-growth areas.” Prestige Beauty and Functional Nutrition have grown strongly and recently announced the acquisition of Polar’s Choice, a digital native skincare brand.
The company expects to achieve the underlying sales growth for the full year “sufficiently within a multi-year framework of 3-5%, despite the more difficult comparisons in the second half.”
Looking at the beauty and personal care business in particular, underlying sales increased 3.3% to € 10.4 billion in the first half and increased 4.2% to € 5.4 billion in the second quarter.
1.8% of growth in the first half was due to quantity and 1.4% was due to price, and the acceleration of sales growth, which is the basis of the second quarter, was “Personal care due to the relaxation of living restrictions in some markets. This is due to an increase in consumption opportunities.
Skin care has grown by double digits and deodorants have grown again. In skin care, both petrolatum and ponds increased by double digits. And the company continued to drive sustainability with innovations such as Dove’s refillable deodorant in the United States... but,Relatives cleanup has declined, primarily because the group has wrapped up a surge in demand from the previous year associated with Covid-19.
Hair care grew in the mid-single digits and all aspects of the category looked healthy, including laundry, care and styling.Good growth and premiums seen in China, India and Brazil The brand SheaMoisture has grown by double digits in the United States.
Unilever’s Prestige Beauty brand business also grew by double digits due to the impact of increased in-store sales. The company raised prices in response to product inflation across categories, especially in Latin America and South Asia.
But that uOperating margin fell 220 bps as investment in branding and marketing increased year-on-year and gross profit declined as a result of high-cost inflation.
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Unilever’s beauty business progressed in the first half, accelerating growth in the second quarter
Source link Unilever’s beauty business progressed in the first half, accelerating growth in the second quarter