Unilever delivers sales growth in Beauty & Personal Care, driven by Prestige Beauty category
26 Jul 2022 --- Unilever’s Beauty & Personal Care segment marked a 7.5% sales growth in the first half of 2022, against high inflation. Price was a key driver for growth across most markets the UK-based company operates in, driving 9% of the segment’s sales.
Strong price increases were particularly pronounced in Latin America, South Asia and Turkey.
“Beauty & Personal Care grew 7.5%, driven by price and continued strong growth in Prestige Beauty and Health & Wellbeing, which is Unilever’s vitamins, minerals and supplements business,” a Unilever spokesperson tells PersonalCareInsights.
Unilever’s Prestige Beauty category notably continued its double-digit growth momentum with Tatcha successfully launching in the UK and expanding in premium channels in China.
“Unilever has delivered a first half performance which builds on our momentum of 2021, despite the challenges of high inflation and slower global growth,” underscores Alan Jope, Unilever CEO.
The overall first half performance delivered an 8.1% underlying sales growth, driven by strong pricing to mitigate input cost inflation, which had an impact on volume.
Turnover increased 14.9% to €29.6 billion (US$ 30 billion), which included a currency impact of 5.6% and 0.6% from acquisitions net of disposals. Underlying operating profit was €5 billion (US$ 5 billion).
Of the three priority markets, the US and India grew strongly, while sales in China were affected by lockdowns in the second quarter.
Premiumization and innovation
Deodorants delivered double-digit growth, helped by continued premiumization and strong innovations, such as the 72-hour protection technology launched with Rexona, the company notes
“We continue to reshape our portfolio, completing the acquisition of Nutrafol, a leading provider of hair wellness products. Prestige Beauty and Health & Wellbeing, now 4% of group turnover, again grew double-digit,” Jope adds.
Skincare grew “low single-digit” on the back of a strong prior year base, with strong growth of the Pond’s face cream and cleansers brand in India. This positive momentum was partially offset by a decline in China, Unilver explains.
The FMCG giant’s skin cleansing category returned to growth, with Dove landing strong pricing and flat volume supported by the launch of premium innovations in North America.
Overall skin cleansing volumes declined to mid-single-digit, particularly affected by the pricing in Europe and South Asia. The company did not specify the numbers.
Haircare grew mid-single-digit, driven by India and North America, partially offset by declines in North Asia and Europe, the company details.
Mid-single-digit growth in oral care was driven by a strong performance in Indonesia with modest growth elsewhere.
Eyeing home care potential
Unilever’s Home Care segment was particularly exposed to rising input costs and took the highest pricing action, leading to underlying sales growth of 10.7%.“Double-digit pricing landed across most geographies in response to very high increases in raw material costs,” highlights the company.
Fabric cleaning posted strong double-digit growth, continuing its momentum with marginal volume decline. “The growth was broad-based across all formats, with strong contributions from OMO and Radiant,” details Unilever.
“South Asia and Turkey achieved double-digit pricing and positive volumes, supported by the continuous development of the liquids market. Fabric enhancers grew mid-single-digit with accelerated performance in the second quarter.”
Comfort continued its growth momentum in Brazil and China but faced declining markets in South-East Asia and Europe. Meanwhile, home and hygiene grew low single-digit with double-digit pricing offset by volume declines across most geographies.
Household cleaner volumes declined as a result of a slowdown in consumers’ disinfecting habits, while dishwasher sales grew, driven by India and Southeast Asia markets.
By Andria Kades
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