Unilever reports record Q3 12.5 percent price increase; raises sales guidance for the year

Unilever reports record Q3 12.5 percent price increase; raises sales guidance for the year

THE WHAT? Unilever has posted underlying price growth of 12.5 percent in Q3, with turnover increasing by 17.8 percent to 15.8 billion euros (£13.7 billion) over the quarter.

THE DETAILS Beauty & Wellbeing grew 6.7 percent, driven by price with slightly negative volume primarily due to core Skin Care and Hair Care. Personal Care underlying sales were up 8.9 percent, led by increased pricing and a lower volume decline as Deodorants returned to volume growth.

Emerging markets grew 13.3 percent with a 14.9 percent contribution from price and volume at (1.4) percent. 

According to Unilever, “South Asia continued to grow strongly through both price and volume. Price growth in Latin America increased to 23.2 percent with volumes contracting by 4.6 percent. China returned to slightly positive growth, and sales growth in South-East Asia benefitted from lapping the prior year lockdown effect in some markets. 

“Developed markets increased by 7.1 percent, with 9.3 percent from price and (2.0) percent from volume. North America grew 8.3 percent, boosted by strong performances of Nutrition and Ice Cream. Europe delivered 5.4 percent growth.”

THE WHY? The buoyed turnover is said to have been bolstered by positive currency changes and prices.

CEO Alan Jope said, “Unilever has delivered another quarter of growth in challenging macroeconomic conditions. Underlying sales growth improved to 10.6%, led by further increases in pricing with only a limited impact on volume, and we now expect underlying sales growth for the full year 2022 to be above 8 percent.

“We have delivered growth in each of our five Business Groups, led by a strong performance from our billion+ Euro brands, growing 14 percent in the quarter. Strong pricing allows us to continue to drive increased investment behind our brands.”