Unilever posts strong first quarter for 2015

REFLECTING a strong headstart for 2015, Unilever achieved 12.3% increase in turnover for the first quarter to reach €12.8 billion, including a positive currency impact of 10.6%. 

 

The company’s underlying sales grew by 2.8%, with emerging markets expanding by 5.4%. Underlying volume and pricing grew by 0.9% and 1.9%, respectively. 

 

In terms of markets, North America experienced growth. In Europe, volume rose markedly but pricing took a dip across all categories. 

 

Unilever’s personal care segment posted growth despite remaining below historic levels in competitive markets. The company expects an uptake in this line in the second half of the year with its strong innovation pipeline.  

 

The newly launched dry sprays in North America and the launch of the new Axe Black variants are contributing to the strengthening deodorants category. The hair segment is likewise growing with the continued success of Dove’s Advanced Hair series and the launch of TRESemmé’s Perfectly (Un)done collection in the US.  

 

The company has recently acquired the iconic REN Skincare brand. It will launch Zendium, a premium toothpaste for boosting the mouth’s natural defenses, in France. 

 

In the home care segment, which has been experiencing broad-based growth, the laundry category posted slower momentum in Q1 as the company balanced market share gain and profitability. The Omo brand continues to expand in Saudi Arabia and the Gulf, and in Brazil with the new pretreaters products. New product launches in Brazil and Vietnam offer customers enhanced cleaning technology.

 

The fabric conditioners category continues to perform strongly. The launch of the Comfort Intense, a premium super-concentrated product that delivers long-lasting freshness, helps drive this growth. In household cleaning, the company expanded Cif’s market from the UK to continental Europe.

 

Unilever CEO Paul Polman said favorable currency movements and improving underlying sales helped the company achieve a strong start for the year despite challenging trading environment in many parts of the world.

 

“The actions we have been taking to put us on track for higher levels of growth are starting to pay off. Despite high levels of currency and commodity volatility, we are now starting to see more tailwinds than headwinds in our markets, and expect our initiatives to deliver a further improvement in volume growth in the remainder of the year,” Mr. Polman stated.