Unilever beauty ops make progress in H1, prestige is strong

Unilever’s first half results on Tuesday, showed some areas performing more strongly than others but general progress, with the company reporting overall underlying sales growth of 9.1%. Meanwhile turnover on a GAAP basis, rose 2.7% to €30.4 billion. 

Of the total 9.1% increase, 9.4% came from price growth but it lost 0.2% in volume.

It seems that the first quarter was better than the second in terms of annual comparisons with Q2 underlying sales growth at a smaller 7.9% and turnover falling 0.4% to €15.7 billion. Of course, we have to take into account that year-on-year comparisons have been complicated for the past few years and have been getting tougher recently given the return to normality and release of pent-up demand during 2022.

Looking at the areas in which Fashionnetwork.com is most interested, the company seems to have done well in the first half.

Underlying Beauty & Well-being division sales rose 9.1% with GAAP turnover up 8.6% to €6.2 billion. And in Personal Care, the underlying sales increase was an even bigger 10.8%, with turnover rising 7.3% to €6.9 billion.

Beauty & Wellbeing — which accounts for 20% of turnover — managed to expand its volumes by 3.8% in the first quarter and 4.9% in the second, despite losing some revenue through currency exchange. But overall, the picture was a positive one for the unit. Hair Care grew in high-single-digits with positive volume growth driven by the Americas. Sunsilk and TRESemmé delivered double-digit growth helped by successful relaunches.

Core Skin Care grew in mid-single-digits with Vaseline performing strongly as it extended the successful Gluta-Hya range into the pro-age segment, offering additional benefits and bringing new consumers to the brand. 

But in North Asia, sales of AHC declined in double-digits as it “reset the cross-border channel”.

Prestige Beauty and Health & Wellbeing delivered another period of volume-led double-digit growth. In Prestige, Paula’s Choice, Dermalogica and Hourglass “delivered strong growth supported by new product launches backed by cutting-edge science and technology such as Dermalogica’s phyto nature oxygen cream”. 

In the Personal Care unit that makes up 23% of turnover, the company also saw both volume and value growth, although currency exchange was an issue again here.

The underlying sales growth of 10.8% was accounted for by a 7.3% rise in prices and volume growth of 3.2%.

Deodorants delivered high-double-digit growth driven by Europe and the Americas. Axe grew in double-digits as it rolled out the Fine Fragrance range. It launched new variants under Rexona that built on its 72-hour technology, delivering high-double-digit growth for the brand. 

The Dove Personal Care portfolio also grew in double-digits.

Skin Cleansing grew in high-single-digits with strong growth in Latin America and South Asia.

New CEO Hein Schumacher said: “the performance in the first half highlights the qualities that attracted me to the business: an unmatched global footprint, a portfolio of great brands and a team of talented people. My early immersion in the business has confirmed my belief in Unilever’s strong fundamentals. The task ahead is to leverage these core strengths — supported by our simplified operating model — to drive improved performance and competitiveness. This is our absolute priority and it will mean bringing greater focus and sharper execution, with science-backed innovations and investment behind our brands.”