LONDON — Sales at Unilever’s beauty and well-being brands outpaced the consumer giant’s overall growth in the fiscal third quarter, climbing 6.7 percent to 3.2 billion euros.
Overall, Unilever‘s underlying sales rose 4.5 percent to 15.2 billion euros, bolstered mainly by volume growth and the continued strong performance of “power brands” such as Dove, Liquid I.V. and Magnum, which generate more than 75 percent of overall turnover.
Hein Schumacher, who joined Unilever last year as chief executive officer, said the company is still in the early stages of improving its performance as it focuses on “doing fewer things, better and with greater impact.”
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He said the company, which owns brands such as Vaseline, Hellmann’s and Ben & Jerry’s, is starting to see the positive impact of scaling fewer, bigger innovations across its markets, adding that the planned separation of the ice-cream business should be completed by the end of 2025.
Schumacher added the company is on track to deliver its 2024 outlook, and is confident “the steps we are taking will help to transform Unilever over time into a consistently higher-performing business.”
During a call with analysts, Schumacher was upbeat, saying there was “good, strong” overall momentum in the U.S., while the relaunched Dove range in the region had been a success.
“I feel more confident now, compared with a year ago. There is momentum in the business, and we are making progress in our multiyear journey,” he said.
Unilever’s shares closed up 2.9 percent to 47.90 pounds on the London Stock Exchange.
Unilever said its Beauty & Wellbeing division delivered double-digit growth for the 15th consecutive quarter despite the slower growth in Prestige beauty.
Prestige brands, including Paula’s Choice, have been impacted by the “continued slowdown” in the U.S. and China beauty markets. Unilever said there was “lower demand” for prestige products in the U.S., although mass brands such as Dove continue to hold up well.
By contrast, Hourglass Cosmetics posted “strong double-digit growth” in the period, driven by hero products such as Vanish Airbrush Concealer and Veil Hydrating Skin Tint.
Other double-digit performers in Beauty & Wellbeing included health supplements brands Liquid I.V., Nutrafol and Olly, with the latter’s female-focused products performing well in China.
Hair care delivered low-single-digit growth, with Dove, TRESemmé and Sunsilk among the top performers. In skin care, Dove saw strong double-digit growth, which included the launch of High Potency Body Serums and three-in-one face care treatments in Brazil.
Pond’s grew double-digit supported by its Bright Miracle and Age Miracle face care ranges, while Vaseline also continued to perform well, supported by the continued rollout of innovations, Unilever said.
RBC Capital Markets said Unilever delivered “slightly better than anticipated organic sales performance,” and described the quarter as “decent.”
Jefferies said the Beauty & Wellbeing division beat consensus expectations despite slowing growth in Prestige Beauty due to waning demand in the U.S. and China.
It has been a busy quarter for the company, which earlier this month sold its Russian subsidiary amid ongoing pressure from media and the wider industry.
Unilever sold the business to Arnest Group, a Russian manufacturer of perfume, cosmetics and household products, following a “considerate, lengthy and complex process,” Schumacher said.
The company also named former Pandora executive Mary Carmen Gasco-Buisson as CEO of its Prestige division, succeeding Vasiliki Petrou, who revealed her departure in June.
As reported, Gasco-Buisson, a Unilever alumna, has more than two decades of experience working in beauty and prestige, including at Procter & Gamble. The enthusiastic, high-energy executive will join Unilever on Nov. 1 and report to Priya Nair, Beauty & Wellbeing president.