Unilever Reports 4.2% Sales Boost in FY2024, Marketing Investment at Decade High

Key Takeaways

Unilever reported a 4.2% underlying sales growth for 2024, with a significant boost from volume growth across all business sectors.
The company’s marketing expenditure reached its highest in over a decade, with a notable increase in investment aimed at brand performance.
CEO Hein Schumacher emphasized ongoing efforts to transform Unilever into a more efficient organization while addressing challenges in key markets like Indonesia and China.

Unilever Reports Strong Annual Results for 2024

Unilever, the UK-based consumer goods powerhouse, has disclosed its financial results for the full year 2024, highlighting significant underlying sales growth of 4.2%. This increase was primarily driven by a volume growth of 2.9% across the company’s various business divisions. Additionally, the underlying earnings per share (EPS) saw a notable increase of 14.7%, indicating robust financial performance.

The company, known for its popular brands such as Dove, is currently on track with its strategy to separate the Ice Cream division. Unilever’s marketing spend reached its highest level in over a decade, rising 120 basis points to 15.5% of sales, reflecting a renewed focus on brand investment, particularly for its power brands, which accounted for more than 75% of total turnover. These power brands notably experienced a 5.3% increase in underlying sales growth.

In the Beauty & Wellbeing division, Unilever reported a 6.5% growth, supported by a strong volume growth of 5.1%. This growth aligns with the company’s broader strategy to enhance performance and capitalize on market opportunities.

Hein Schumacher, CEO of Unilever, commented on the company’s success, stating, “Today’s results reflect a year of significant activity as we focused on transforming Unilever into a consistently higher performing business.” Schumacher elaborated on the company’s growth action plan, which emphasizes focusing on fewer initiatives with greater impact. He noted that the plan has been executed efficiently, yielding progress throughout 2024.

Furthermore, the company is implementing a comprehensive productivity program announced earlier in March, which aims to streamline operations and foster accountability within the organization. Schumacher also acknowledged the challenges faced in key markets such as Indonesia and China, where strategic resets and transformations are necessary due to market conditions. He anticipates that the benefits of these initiatives will start materializing in the second half of 2025.

In summary, Unilever’s performance in 2024 illustrates a trajectory of strong growth and transformation, supported by strategic investments and a focused approach to brand management. The company’s commitment to overcoming regional challenges signals a proactive stance in adapting its business strategies for sustained future growth.

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