Unilever Q1 Turnover Increased to $16.36 Billion with UPG of 10.7 %

Consumer products giant Unilever reported its turnover in 2023 Q1 increased by 7% to €14.8 billion ($16.36 billion). Unilever said the underlying sales growth (USG) accelerated to 10.5%, driven by progress against strategic priorities and the underlying price growth (UPG) was 10.7% in Q1.

Unilever said growth in Q1 was broad-based across Business Groups and geographies and price growth remained elevated at 10.7%, with an improved quarter-on-quarter volume performance at (0.2)%.

Unilever said the number of billion+ Euro brands reached 14, accounting for 54% of Group turnover, delivered underlying sales growth of 12.1%, led by strong performances from OMO, Hellmann’s, Rexona and Lux.

Unilever now expect its underlying sales growth for the entire year of 2023 will be at least as high as the upper end of its previous multi-year range of 3-5%. The underlying price growth is expected to remain high during the first half of the year and gradually decline as the year progresses.

In terms of business segments, the Beauty & Wellbeing sector saw a 9.3% increase in underlying sales, with 6.5% attributed to price growth and 2.6% to volume growth. Hair Care saw growth in all regions, with high single-digit growth and positive volume growth due to the rollout of the Sunsilk relaunch. TRESemmé also experienced strong growth, while the new Clear Anti Hair Fall product in China performed well.

Core Skin Care achieved mid single-digit growth, with strong performances in South Asia and South East Asia, but a double-digit decline in North Asia due to decreased sales of AHC. Vaseline and Pond's saw double-digit growth, driven by innovations with additional consumer benefits, such as the premium Gluta-Hya serum that revitalizes skin overnight and boosts skin elasticity.

Prestige Beauty and Health & Wellbeing sectors achieved double-digit growth for another quarter, with significant contributions from Paula's Choice, Hourglass, and Liquid IV.

Personal Care saw a 12.7% increase in underlying sales, with 9.4% attributed to price growth and 3.0% to volume growth. The growth was widespread, with strong performances in Latin America, South Asia, Europe, and North America.

Deodorants achieved high double-digit growth driven by Europe and the Americas, with volumes boosted by the recovery in service levels and associated pipeline fill. Rexona's strong performance was accelerated by the premium and superior 72-hour protection technology. Axe Fine Fragrance range, which combines odor protection with fine fragrances and freshness, contributed to double-digit growth for the brand.

Oral Care achieved mid single-digit growth led by strong pricing. Close Up saw double-digit growth with good performance in South Asia and Africa.

In terms of geographical areas, Underlying sales growth was 9.9% with 9.5% from price and 0.3% from volume for Asia Pacific Africa, with China saw low single-digit growth, which was driven by a mix of volume and price. The growth improved throughout the quarter as Covid restrictions eased.

In North America, underlying sales saw an 8.1% growth, with 7.2% attributed to price growth and 0.9% to volume growth. Nutrition achieved double-digit growth with strong price growth and negative volume, driven by Dressings, while Personal Care growth was led by a very strong performance in Deodorants.

In Latin America, underlying sales growth grew double-digit at 18.7%, with price growth of 18.4% and positive volume growth of 0.2%.

Europe saw strong underlying sales growth of 9.2%, with 12.6% attributed to price growth and a decline of (3.0)% in volume. Personal Care, Nutrition, and Beauty & Wellbeing all achieved double-digit growth, while Home Care and Ice Cream only grew modestly as volumes declined.