Dateline: LONDON, July 31, 2024 – Unilever (UL) posted 3.8% second-quarter underlying sales growth, beating analyst estimates of 3.6% as shares rose three percent Thursday. The consumer goods giant’s outperformance signals pricing power remains intact despite global economic pressures ahead of its planned ice cream division spinoff.
- Q2 underlying sales growth hit 3.8%, above 3.6% consensus
- First-half growth reached 3.4% with positive volume trends
- Full-year guidance maintained at 3% to 5% range
Market Reaction & Context
Unilever shares surged 3.05% following the earnings release, outpacing broader European consumer staples indices 3. The Dove soap and Ben & Jerry’s ice cream maker’s performance contrasts with mixed results across the sector, where companies have struggled to balance pricing increases with volume preservation.
For the first half of 2025, underlying sales growth reached 3.4%, driven by 1.5% volume increases and 1.9% price improvements 9. Total turnover declined 3.2% to €30.1 billion due to currency headwinds and portfolio changes 4.
Regional Performance & Growth Drivers
North America and Europe led the company’s strong performance, with robust demand across key product categories 5. The company reported positive volume growth across all business divisions for the quarter, marking a significant operational achievement 8.
Higher pricing contributed meaningfully to growth as Unilever demonstrated its ability to pass through cost inflation to consumers 7. This pricing discipline has become crucial for maintaining margins amid persistent input cost pressures.
Management Outlook & Strategic Focus
Unilever maintained its full-year 2025 underlying sales growth guidance within the 3% to 5% range. Management expressed confidence that second-half growth would exceed first-half performance 2.
“First half performance supports full year confidence,” the company said in its earnings statement, indicating momentum would accelerate through the remainder of 2025 2.
Ice Cream Spinoff Continues
The stronger-than-expected results come as Unilever prepares to demerge its ice cream business, which includes brands like Ben & Jerry’s and Magnum 9. Despite the upcoming separation, ice cream products contributed positively to overall performance, though the division reported lower profits 6.
The spinoff represents part of Unilever’s broader portfolio optimization strategy aimed at focusing on higher-growth, higher-margin categories. Investors will monitor execution of this complex transaction alongside operational performance through the remainder of the year.
Not investment advice. For informational purposes only.
References
1 Wall Street Journal (July 30, 2024). “Unilever Posts Underlying Sales Growth Ahead of Views”. Retrieved July 31, 2024.
2 Unilever (July 30, 2024). “First half performance supports full year confidence”. Retrieved July 31, 2024.
3 AInvest (July 31, 2024). “Unilever Shares Soar 3.05% on Strong Sales Growth”. Retrieved July 31, 2024.
4 Cosmetics Business (July 30, 2024). “Unilever’s turnover for first half 2025 down 3.2% with subdued”. Retrieved July 31, 2024.
5 Fashion Network (July 30, 2024). “Unilever posts stronger-than-expected Q2 sales growth, boosted by north america and europe”. Retrieved July 31, 2024.
6 MarketScreener (July 31, 2024). “Unilever posts lower profits, despite success of ice cream products”. Retrieved July 31, 2024.
7 Yahoo Finance (July 30, 2024). “Unilever’s quarterly sales growth beats estimates”. Retrieved July 31, 2024.
8 Cbonds (July 31, 2024). “Unilever Posts Underlying Sales Growth Ahead of Views”. Retrieved July 31, 2024.
9 Shares Magazine (July 30, 2024). “Unilever underlying growth beats consensus ahead of ice cream demerger”. Retrieved July 31, 2024.