Unilever reports return to sales growth as e-commerce business expands
Unilever (ULVR) reported a return to sales growth in the third quarter as it expanded its e-commerce business amid continued demand for hygiene and in-home food products.
The consumer goods behemoth said its online channels had continued to grow and its e-commerce business grew 76 per cent.
Underlying sales grew by 3.9 per cent in volume and 0.5 per cent from price as demand for hygiene products continued.
The consumer goods giant said a negative impact from currency dragged turnover down 7.7 per cent, meaning tunrover was down 2.4 per cent on the second quarter.
Sales in emerging markets rose 5.3 per cent, while developing markets rose 3.1 per cent.
Sales of Unilever’s home care brands increased 6.7 per cent as consumer demand for household cleaners continued into the third quarter.
The consumer goods group said its “home and hygiene brands delivered high-teens underlying sales growth, with germ-killing and antibacterial benefits particularly sought after.”
A 3.8 per cent rise in Unilever’s beauty and personal care division was helped somewhat by continued demand for hand hygiene products, albeit slightly below levels seen in the second quarter.
Trends he food and refreshment division saw sales rise 3.7 per cent, with strong demand for tea as in-home eating occasions continued through various lockdown restrictions.
There was a rise in sales for home ice cream brands, such as Ben and Jerry’s and Magnum, which more than offset the decline in out of home sales.
Unilever had seen a significant hit to volumes of ice cream in the first quarter, as sales were significantly hit by lockdowns and an uncertain holiday and tourism season.
Chief executive Alan Jope said: “We have delivered a strong performance this quarter. Volume-led growth shows the resilience of our portfolio and our agility in responding to rapidly changing dynamics across consumer segments, geographies and channels.”