𝗣𝗿𝗼𝗴𝗿𝗲𝘀𝘀𝗶𝗻𝗴: Unilever
UL released last week its Q2/H1 results
𝗢𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝗹𝘆 𝗮 𝗹𝗼𝘁 𝘁𝗼 𝗹𝗶𝗸𝗲:
From 4% growth (mostly driven by volume), a significant gross margin improvement ( 420bps) partly reinvested in marketing ( 180bps) resulting in a drastic improvement in operating profit ( 250bps)
Many FMCG companies would envy this set of numbers
𝗡𝗼𝘁 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝘄𝗮𝘀 𝗽𝗲𝗿𝗳𝗲𝗰𝘁 𝘁𝗵𝗼𝘂𝗴𝗵:
Topline consensus was missed by a thin margin) but progress is real
𝗕𝘂𝘁 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗶𝘀 𝘁𝗮𝗸𝗶𝗻𝗴 𝗻𝗼𝘁𝗶𝗰𝗲 (𝘀𝘁𝗼𝗰𝗸 𝗽𝗿𝗶𝗰𝗲 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗯𝘆 𝟱% 𝘀𝗶𝗻𝗰𝗲 𝗹𝗮𝘀𝘁 𝘄𝗲𝗲𝗸 𝗮𝗻𝗱 𝗯𝘆 𝟮𝟰% 𝗬𝗧𝗗)
With the Ice-cream carve-out & the productivity plan both under way, UL has still solid levers to improve its growth & profitability footprint
𝗟𝗼𝗻𝗴 𝘁𝗲𝗿𝗺 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝘄𝗶𝗹𝗹 𝗶𝗻 𝗳𝗶𝗻𝗲 𝗼𝗻𝗹𝘆 𝗰𝗼𝗺𝗲 𝗱𝗼𝘄𝗻 𝘁𝗼 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗵𝗮𝗿𝗲 𝗼𝘂𝘁𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲
Exciting times ahead for UL
Hein Schumacher (CEO, Unilever): “We are focused on driving high-quality sales growth and gross margin expansion, led by our Power Brands. Over the first half, we made progress on those ambitions. Underlying sales grew 4.1%, driven by a third consecutive quarter of positive, improving volume growth, while pricing continued to moderate in line with our expectations. Strong gross margin progression fuelled increased investment behind our innovations, and resulted in a step-up of our profitability. We continue to embed the Growth Action Plan, doing fewer things, better and with greater impact. The implementation of a comprehensive productivity programme and the separation of Ice Cream are key to delivering on that commitment and we are progressing at pace. There is much to do, but we remain focused on transforming Unilever into a consistently higher performing business.”
Unilever H1 FY2024
H1 FY24
• NR: $33.7 bn (€ 31.1bn)
• OSG: 4.1%; Volume: 2.6%, Price/ mix: 1.6%
• GM%: 45.7%; 420 bps vs H1 FY23
• A&M%: 15.1%; 180 bps vs H1 FY23
• Underlying Operating Profit %: 19.6%; 250bps vs H1 FY23
Results by Division
• Beauty & Wellbeing: $7.0Bn NR; OSG: 7.1% (Vol: 5.5%, Price/Mix: 1.5%); UTOP%: 20%
• Personal Care: $7.6Bn NR; OSG: 5.6% (Vol: 2.9%, Price/Mix: 2.6%); UTOP%: 23%
• Home Care: $6.8Bn NR; OSG: 3.3% (Vol: 4.6%, Price/Mix: -1.3%); UTOP%: 16.3%
• Nutrition: $7.3Bn NR; OSG: 3.2% (Vol: -%, Price/Mix: 3.2%); UTOP%: 22.3%
• Ice-cream: $5Bn NR; OSG: 0.6% (Vol: -1.0%, Price/Mix: 1.6%); UTOP%: 14.6%
𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y
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