Unilever’s half-year results reveal a focus on volume growth in its food segments, with a 2.6% increase compared to previous quarters. This strategy aligns with the company’s goal of allowing volume to drive growth. However, commodity deflation has resulted in a significant reduction in price growth compared to previous years.
Overall, volume growth for Unilever in the first half of the year was positive at 2.6%, showing an improvement from the 2.2% volume growth in the previous quarter. The CEO, Hein Schumacher, emphasized the importance of volume sales in driving growth for the company.
Nutrition, which initially saw a decline in volume growth, has now achieved flat volume growth, driven by popular brands such as Knorr and Hellman’s. On the other hand, the ice cream segment experienced a decline in volume growth due to market challenges in China and Europe.
Europe saw a return to volume growth in these half-year results, showing positive signs for Unilever. However, price growth for the company has slowed down due to changes in the commodities cycle.
Innovation remains a key focus for Unilever, with increased capital investment in brand and marketing initiatives. The company aims to double the size of its innovations and grow select platforms to over €100mn.
Despite pricing deceleration in the first half of 2024, Unilever remains focused on competitiveness and volume-led growth. The company has adjusted pricing in response to commodity deflation and aims to maintain consumer satisfaction.
Looking ahead, Unilever anticipates inflation to return to normal levels, following recent spikes. The company expects stability in the market as inflation levels normalize and consumer preferences evolve.
In conclusion, Unilever’s emphasis on volume-driven growth, innovation, and responsiveness to market changes reflects its commitment to sustainability and consumer satisfaction in the food and beverage industry.
