Unilever, the maker of Ben & Jerry’s ice cream and Marmite, has announced its full-year results with underlying sales growth of 4.2% with volume growth of 2.9%.
Underlying operating profit is up 12.6% and the full-year outlook – Unilever is guiding for underlying sales growth of 3 to 5% in FY25, with modest improvement in underlying operating margins.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, said, “2024 was a much better year for Unilever with solid, volume-led sales growth across every division, and rising margins. The early signs from Hein Schumacher’s turnaround plan are promising, although there remains much still to do.
The market environment for consumer goods companies is tough. China’s economy is weakening, local competition in emerging markets is fierce and the high level of inflation in recent years means the appeal of private label brands has arguably never been greater. As a result, Unilever is pointing to a slower start to 2025.
Hein Schumacher has made great progress turning the tanker, but his work is certainly not done. Indonesia has been a notable problem child for years and the weak growth in emerging markets more broadly is a concern given more than half of group sales come from these regions.
Overall, operational execution at Unilever has clearly improved and there is a much greater sense of urgency and dynamism. It’s just as well, because its markets are increasingly challenging. This means Unilever will need to be at the top of its game to sustain its recent momentum.”
