Beauty is biggest winner for Unilever in Q1

Unilever’s Q1 trading update release on Thursday showed improved volume growth that was driven by its so-called Power Brands.

The foods-to-beauty group said company-wide underlying sales growth (USG) was 4.4%, with volume growth increasing to 2.2%. All five of its business groups reporting USG, led by Beauty & Wellbeing.

In fact, Beauty & Wellbeing sales rose 7.4% on an underlying basis to reach €3.2 billion, although they were up a smaller 3.1% on a reported basis versus the first quarter of 2023.

And in Personal Care, the company saw 4.8% USG to reach €3.4 billion, although again, this increase was lower on a reported basis at 0.4%.

Beauty& Wellbeing accounts for 21% of Q1 group turnover and the business has been increasingly moving towards a more premium positioning as well as growing internationally.

The biggest chunk of this unit’s USG came from volume but 1.7% was from pricing increases. 

The group’s Prestige Beauty brands grew in double-digits, led by Tatcha, Hourglass and Living Proof.

Hair Care delivered mid-single-digit growth with positive volume and price movements. Dove grew in high-single-digits supported by the launch of Scalp+ Hair Therapy. Clear, the world’s best-selling shampoo for men, grew in high-single-digits helped by the continued rollout of its patented anti-dandruff shampoo. 

Sunsilk was up in double-digits while TRESemmé grew in high-single-digits and continued to expand its ultra-gloss Lamellar Shine shampoos and conditioners to new markets.

Core Skin Care grew in mid-single-digits with good growth in India and the US. But it saw a low-single-digit decline in North Asia driven by price. 

Vaseline grew in double-digits with the rollout of Gluta Hya body care to new markets and the launch of new variants, including its Smooth and Glow range that includes the first body lotion with chemical exfoliation. 

And following its relaunch last year, Pond’s face care continued its good momentum with high-single-digit growth led by volume.

In the slightly larger Personal Care unit, which accounts for 23% of group turnover, it “focused on winning with science-led brands that deliver unmissable superiority to our consumers across Deodorants, Skin Cleansing, and Oral Care”.

Here, the 4.8% growth was mainly about price with 3.4% coming from price rises.

Deodorants grew in double-digits, Skin Cleansing was flat, and Oral Care continued to grow by mid-single-digits.