Unilever Shines with Broad-Based Growth Fueled by Beauty and Personal Care Momentum
Consumer goods giant Unilever recently announced a period of "broad-based growth," affirming its position as "on track for [the] full-year outlook" in its Q3 trading statement. The multinational reported an underlying sales growth (USG) of 3.9%, reaching a total turnover of €14.7 billion for the company as a whole. This performance marks an improvement over the 3.6% growth recorded for the year so far and represents a significant turnaround from the 3.5% decline experienced in Q3 2024.
Notably, two key divisions, Beauty & Wellbeing and Personal Care, demonstrated even stronger progress than the overall company. The Beauty & Wellbeing division saw a robust 5.1% increase, achieving €3.2 billion in sales for the quarter. This is an acceleration compared to the 4.2% growth for the year so far and a substantial recovery from a negative 3.1% in Q3 last year. Similarly, Personal Care advanced by 4.1% in the latest quarter, reaching €3.3 billion, though this was slightly less than its 4.6% year-to-date performance, it significantly outperformed the 2.3% drop in Q3 last year.
Delving deeper into these two divisions, Beauty & Wellbeing, which accounted for 22% of Q3 turnover, is strategically focused on "premiumising" its core hair and skincare portfolios. The division is also actively fuelling the growth of its Prestige Beauty and Wellbeing portfolios through selective international expansion. Its impressive 5.1% USG was driven by 2.3% from volume and 2.7% from price. Growth in this segment accelerated compared to the first half of the year, spearheaded by double-digit growth across several key brands including Dove hair, Vaseline, Liquid I.V., Nutrafol, Hourglass, and K18.
Within Beauty & Wellbeing, Hair Care performance was flat overall, with varying results across different brands. Dove experienced double-digit growth, attributed to a balanced contribution from volume and price, further supported by the successful rollout of its new fibre repair technology range. Tresemme achieved low-single-digit growth, where strong momentum in styling and treatments was partially offset by a volume decline in the US following corrective pricing actions. Conversely, market softness in Brazil and China continued to impact Sunsilk and Clear, leading to declines for both brands.
Core Skin Care within the Beauty & Wellbeing division grew in mid-single-digits, benefiting from balanced volume and price contributions. Vaseline, in particular, delivered double-digit growth, primarily driven by volume. This growth was bolstered by premium innovations, such as the introduction of its new Cloud Soft Light Moisturiser in India. Prestige Beauty also registered mid-single-digit growth, led by volume, as the prestige beauty market showed gradual improvement. While Hourglass and K18 continued to achieve double-digit growth, Paula’s Choice and Dermalogica saw low-single-digit growth, which was an improvement considering their declines in the first half of the year.
Meanwhile, Personal Care, also representing 22% of Q3 turnover, centers its strategy on "science-led brands that deliver unmissable superiority to our consumers." The division's priorities include developing superior technology and multiyear innovation platforms, leveraging partnerships with customers, and expanding into premium areas and digital channels. Its 4.1% USG comprised 1% from volume and 3.1% from price. Strong performance in North America and Asia Pacific Africa was partially counterbalanced by a decline in Latin America. Dove, a flagship brand, grew in mid-single-digits, propelled by the continued success of its premium innovations.
Specifically within Personal Care, Skin Cleansing grew in low-single-digits, primarily driven by price. The success of Dove was evident through its continuing strong sales from premium innovations and the strategic launch of unique, limited-edition seasonal body wash ranges, further strengthening its market position.
