Unilever has released its results for the first half of 2024, reporting that its sales volumes were up 2.6%.

Unilever reported an underlying sales growth of 4.1%, with its ‘Power Brands’ leading growth with 5.7% underlying sales growth and volumes up 4%. The company has a number of ‘Power Brands’ that it focuses on, including Knorr, Ben & Jerry’s, Hellmann’s and Magnum.

Turnover increased 2.3% to €31.1 billion, and Unilever’s underlying operating margin was up 250 basis points to reach 19.6%. Its gross margin was up 420 basis points.

Hein Schumacher, Unilever CEO, said: “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.”

Schumacher continued: “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.”

Outlook

Unilever said it continued to expect underlying sales growth (USG) for 2024 to be within its multi-year range of 3% to 5%, with the majority of the growth being driven by volume.

Its underlying operating margin for the full year is expected to be at least 18%, with “increasing investment” from its brands. Unilever said it expects year-on-year margin progression in the second half to be smaller than in the first half.