Unilever has strong Q3, but prestige beauty performance is patchy

Unilever’s Q3 trading statement on Thursday showed volume-led growth with turnover of €15.2 billion across the business and underlying sales growth (USG) of 4.5%.

For the Beauty & Wellbeing division that translated into USG of 6.7% and turnover of €3.2 billion, while Personal Care saw USG of 4.4% and turnover of €3.4 billion.

Digging deeper into those two divisions, Beauty & Wellbeing delivered a strong performance. Hair Care saw low-single-digit growth with low-single-digit volume growth. Dove continued to deliver volume-led growth following the first-half launch of Scalp + Hair Therapy, while TRESemmé grew in mid-single-digits. Its largest hair care brand, Sunsilk, grew in low-single-digits and Clear achieved high-single-digit growth outside China, but was flat overall.

Core Skin Care grew in mid-single-digits led by double-digit volume growth in the US. Dove achieved strong double-digit growth, which included the launch of High Potency Body Serums and 3-in-1 face care treatments in Brazil. Pond’s grew in double-digits supported by its Bright Miracle and Age Miracle face care ranges. 

Vaseline continued to perform well, supported by the continued rollout of premium innovations like Radiant X and Gluta Hya, as well as the launch of Pro VitaB3 Serum-Burst Lotion in the US.

Within the division, Health & Wellbeing and Prestige Beauty combined delivered double-digit growth for the 15th consecutive quarter. But Health & Wellbeing was the star here and offset lower growth in Prestige Beauty, reflecting the continued slowdown in the US and China beauty markets. 

There were pockets of strength though. Hourglass led Prestige growth with strong double-digit growth, driven by hero products such as Vanish Airbrush Concealer and Veil Hydrating Skin Tint, while Paula’s Choice was impacted by the market slowdown.

Personal Care saw Deodorants up in high-single-digits, which was volume-led. Latin America led growth with double-digit volume, while Europe and North America saw mid-single digit increases. 

Dove in this category continued to grow in double-digits with strength across both core women’s and Dove Men+Care ranges, including its expansion into the whole body deodorants market in the first half. Axe and Rexona continued to grow, driven by the ongoing success of its fine fragrance and clinical ranges.

Skin Cleansing grew in low-single-digits, fully driven by volume. In Europe, it achieved high-single-digit growth driven by volume increases, while in the US, it saw mid-single-digit growth. Dove delivered high-single digit growth, supported by the first-half relaunch of its body wash in Europe and the launch of its premium body wash range infused with skincare serums in the US. But growth was tempered by deflation in India, category declines in China, and operational challenges in Indonesia.