Unilever PLC (LSE:ULVR) reported rising prices continued to support sales growth in the first half of 2023, led by strong performances by its billion+ Euro brands.
The maker of Ben & Jerry’s ice cream and Dove soap said underlying sales growth in the six months to 30 June 2023 was 9.1%, driven by all business groups, with 9.4% price growth and a 0.2% drop in volume.
In the second quarter, underlying sales growth of 7.9% beat a company-compiled consensus of 6.4%.
“Our billion+ Euro brands, accounting for 55% of group turnover, delivered underlying sales growth of 10.8%, led by strong performances from Rexona, Hellmann's, OMO, Sunsilk and Lux,” Unilever said in a statement.
But the firm cautioned as underlying price growth has moderated from 13.3% in the fourth quarter of 2022, volumes were virtually flat with a step-up in performance in Beauty & Wellbeing and Personal Care offsetting volume declines elsewhere.
Turnover increased 2.7% to €30.4bn and underlying operating profit improved 3.3% to €5.2bn, with a 10-basis point margin improvement to 17.1%. Underlying EPS improved 3.9% to €1.39.
Looking ahead, Unilever forecast another year of strong underlying sales growth despite “a volatile and high-cost environment”.
“We expect underlying sales growth for the full year to be above 5%, ahead of our multi-year range, with underlying price growth continuing to moderate through the year,” it said.
A modest rise in operating margin for the full year is expected, reflecting higher gross margin and increased investment.
The results were the first under the stewardship of new chief executive Hein Schumacher, who said: “My early immersion in the business has confirmed my belief in Unilever's strong fundamentals."