Unilever posts 10.5% underlying sales growth for first quarter 2023

Unilever has reported underlying sales growth of 10.5 % for its first quarter 2023 results. 

The owner of Ben & Jerry’s and Marmite reported a turnover of €14.8 billion for Q1, representing an increase of 7% from the year-ago period. Unilever said this growth reflected the sale of the tea business on 1 July 2022, and the acquisition of Nutrafol on 7 July 2022. 

Unilever’s brands accounted for 54% of group turnover and delivered underlying sales growth of 12.1%.

The company’s nutrition segment recorded underlying sales growth of 11.9% at €3.4 billion, led by its Hellmann’s brand (make taste, not waste campaign) and the relaunch of fortified Knorr stock cubes to address iodine and zinc deficiencies in consumers.

Ice cream was up 6% at €1.7 billion. Out-of-home ice cream grew double-digit with positive price and volume ahead of the summer season. This was led by Magnum, supported by the company’s Starchaser and Sunlover limited edition products, as well as its Cornetto brand. 

That said, Unilever’s volumes were down. Nutrition volumes fell 1.3%, driven by scratch cooking aids, and ice cream saw volumes drop by 4.1%. According to Reuters, consumers are seeking cheaper alternatives to Unilever’s ice cream brands – which include Ben & Jerry’s and Magnum – after big price hikes.

Underlying sales grew across the Asia Pacific and Europe regions in the quarter – by 9.9% and 9.2%, respectively. The Americas saw underlying sales growth of 11.9%.

Unilever is expecting underlying sales growth for the full year 2023 to reach at least 3-5%.

CEO Alan Jope said: “Unilever has had a good start to the year, delivering another quarter of strong topline growth. Underlying sales growth accelerated to 10.5%, driven by price growth in response to continued high input cost inflation and an improved volume performance.”

He added: “We are continuing to execute well on our strategic priorities. Growth was broad-based across the five Business Groups, underpinned by strong performances from our billion+ Euro brands. We have stepped up both the effectiveness of our innovation and the investment behind our brands…”

“We remain focused on navigating through continued macroeconomic uncertainty and are confident in our ability to deliver another year of strong growth, which remains our first priority.”