Unilever fiscal 2022 results reveal a 9 per cent increase in underlying sales across all units. The increase in prices primarily drove this growth by 11.3 per cent.
Unilever is a multinational consumer goods company that operates in a wide range of categories. Categories like food and beverage, home care, personal care, and refreshments. The FMCG manufacturer based in the UK has products available in more than 190 countries. It owns some well-known brands such as Dove, Elle18, Lux, and Vaseline among others.
According to Unilever’s fiscal 2022 results, the company experienced a 9 per cent increase in underlying sales across all units. The increase in prices primarily drove this growth by 11.3 per cent. However, this increase in prices was somewhat offset by a 2.1 per cent decrease in volumes. CEO Alan Jope shared, “Unilever delivered a year of strong topline growth in challenging macroeconomic conditions.”
“Despite sharp rises in material costs, we have prioritised stepping up our brand and marketing investment. Underlying operating margin was delivered in line with our guidance, with underlying operating profit up for the year,” he added. “We have made further progress in the transformation of Unilever and continued to deliver against our strategic priorities. Our new operating model is already unlocking a culture of bolder and more rapid decision-making with improved accountability.”
Despite facing inflationary pressures on its margins, the company experienced a significant 14.5 per cent growth in turnover. Reaching over USD 63.87 billion, and a slight increase in underlying operating profit to around USD 10.321 billion. The Beauty & Wellbeing unit was a top performer among the company’s different categories. With underlying sales rising by 7.8 per cent, primarily driven by the Prestige and Health & Wellbeing divisions.
These two divisions contributed more than USD 2.66 billion in turnover and demonstrated strong growth throughout the year. In terms of regional performance, emerging markets showed an 11.2 per cent increase in underlying sales. China experienced a slight decline. However, South Asia saw strong growth in both price and volume. And Latin America experienced a 20.1 per cent increase in price.
On the other hand, developed markets witnessed a more modest growth of 5.9 per cent. With volumes holding up relatively better in North America than Europe. “We continue to improve our growth profile, with the sale of the global Tea business and the acquisition of Nutrafol,” Jope continued. “We are increasingly realizing the benefits from the reshaped portfolio, accelerated savings delivery and improved execution.
“There is more to do, but the changes we have made mean that we start 2023 with momentum, setting us up well for delivering another year of higher growth, which remains our first priority,” he stated.
