UNILEVER ANNOUNCES 7% SALES GROWTH DESPITE CHALLENGING ENVIRONMENT

Unilever announced underlying sales growth of 7.3% in a “very challenging input cost environment.” In addition, the company’s revenues increased by 11.8%, including a 3.5% foreign exchange impact. Pricing increased further from levels seen in the fourth quarter of 2021, with a negative impact on volume, particularly in Home Care, which had the strongest price action.

By sector, Unilever’s Beauty & Personal Care segment grew 7.1% in the quarter. Deodorants posted high single-digit growth, helped by technology-driven innovations behind Dove and Rexona, as well as a strong start to the year for Axe. Hair posted mid-single digit growth driven by both styling and wash and care.

According to Unilever CEO Alan Jope, “We are performing well in a very challenging input cost environment. Underlying sales growth of 7.3% was driven by strong pricing, with limited volume impact in the quarter. This performance was achieved against the backdrop of significant increases in input costs that have accelerated further during the first three months of the year, and the human tragedy of the war in Ukraine.”

However, Jope qualifies in this regard that “we maintain strong investment in our core brands, with our brands growing by more than 13 billion euros at 8.8% in the quarter. E-commerce sales now account for 14% of turnover after another quarter of strong double-digit growth.”

However, the company has said it expects input cost inflation of around €2.1 billion in the first half of the year, but the war in Ukraine and the related rise in raw material inflation have raised its cost forecast for the second half of the year. It currently expects input cost inflation for the second half of the year to be around €2.7 billion.