Underlying sales in the food category grew by 0.1%, with -1.1% from volume and 1.3% from price. Its offset growth reportedly reflected “continued softer market conditions”, as well as increased competition in its US condiments division.
The cooking aids category was “broadly flat”, with positive price offset by volume decline. Condiments was also flat, with emerging market growth offset by weakness in developed markets, reflecting soft market conditions and lower presence in the fastest growing segments.
The Unilever Food Solutions business achieved low-single-digit growth, with balanced volume and price. Growth was led by acceleration in North America to mid-single-digit growth, reflecting what Unilever called its “strong customer proposition”. China delivered continued low-single-digit growth.
Foods was flat, it said, as emerging markets and Unilever Food Solutions growth was offset by softness in developed market retail. Full company turnover was €13.3 billion, up 6.7% on the prior year, reflecting positive underlying sales growth of 5.2%, a 0.8% net contribution from acquisitions and disposals, and a positive currency impact of 0.6%.
The business said it has seen “strong progress” on its McCormick merger regulatory approvals, and said that the council consultation was “underway and on target” to complete prior to closing of the transaction.
Fernando Fernandez, CEO of Unilever, commented: “We have delivered another quarter of competitive growth, led by continued strong volume delivery and a step up in price to offset the impact of higher commodity costs. Emerging markets were again a key driver, with broad-based growth across markets, led by India and continued strength in Latin America and South East Asia. Developed market performance reflected tougher prior year comparators and softer performance in Foods.
“We are performing while transforming Unilever. We are becoming simpler and sharper, with greater focus and stronger execution as we drive Desire at Scale across our brands. This progress gives us confidence that we will now deliver at least 3% volume growth for the full year.”
