Key Takeaways
- Unilever reports a 3% underlying sales growth for Q1, with turnover at €14.8 billion.
- Dove brand achieved an 8% sales growth, driving overall performance in the beauty category.
- CEO Fernando Fernandez emphasizes confidence in future growth despite macroeconomic uncertainties.
Quarterly Performance Overview
Unilever has released its financial results for the first quarter of the current fiscal year, revealing a 3% underlying sales growth (USG). Volume increased by 1.3%, while prices rose by 1.7%. The company reported a turnover of €14.8 billion, which marks a slight decline of 0.9% compared to the same period last year, driven mainly by net disposals.
Despite this minor setback, Unilever maintained its outlook for 2025, projecting an underlying sales growth of 3 to 5% and a modest improvement in operating margin. Several key highlights from the quarter include a substantial 8% sales growth from Dove, Unilever’s largest brand. The Beauty & Wellbeing segment saw an overall growth of 4.1%, fueled by robust double-digit performance from Wellbeing brands. Personal care, as a broader category, recorded a 5.1% increase.
Future Outlook and Strategies
CEO Fernando Fernandez shared insights on the company’s performance, stating, “We have started the year with a resilient performance. First quarter underlying sales growth of 3 percent reflects the strength of our increasingly premium and innovation-led portfolio in developed markets.” Fernandez further noted that they are implementing strategies in emerging markets to bolster growth throughout the year.
He acknowledged the challenges posed by heightened global macroeconomic uncertainty but expressed optimism regarding Unilever’s innovation initiatives, strong brand investments, and improving competitive position. Fernandez highlighted that building desirability for Unilever’s brands and ensuring outstanding execution in the marketplace are crucial elements in their strategy to enhance overall business performance.
Looking forward, the company remains committed to achieving its goals for 2025 and plans to make significant progress in the coming years, underscoring a strong belief in their long-term strategy and adaptability.
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