While many A-brands are struggling, Unilever has been increasing its sales for four quarters in a row. In fact, sales growth is mainly due to volume increases and hardly to higher prices.
Prices remain stable
Sales at Unilever rose more strongly than expected in third quarter: the FMCG producer grew 4.5 % to 15.2 billion euros in underlying sales, more than the + 4.2 % analysts were expecting. As much as 3.6 % came from additional product sales, only 0.9 % from higher prices.
CEO Hein Schumacher stressed that it was already the fourth quarter in a row with volume growth in all divisions of the company. Dove, Liquid I.V., Comfort and Magnum performed particularly strongly. Nevertheless, Unilever still plans to split off its ice cream division, a project the CEO says is on track.
For the full year, Unilever expects underlying sales growth between 3 and 5 %. Operating margin would be at least 18 %, the company previously predicted. Recently, the group announced it would sell its Russian operations after all, to packaging company Arnest, which also bought Heineken’s Russian branch.
