Unilever Growth Momentum Continues in First Quarter 2013
25 Apr 2013 --- Unilever has released its results for the first quarter 2013. The company maintained good growth momentum in the quarter despite challenging economies and the tough competitive environment.
Growth remained solid in emerging markets despite the continuing macro-economic headwinds, whilst developed markets remained sluggish. In this context we delivered another quarter of good growth led by emerging markets which grew by 10.4% with a good balance between volume and price. Developed markets declined in the quarter against a high prior year comparator.
Commenting on the results, CEO Paul Polman said: “This performance is further evidence that Unilever is becoming fit to win and capable of delivering consistent growth ahead of our markets. Our strategy is working.
“The Unilever Sustainable Living Plan is becoming embedded across the business and increasingly driving our day-to-day decisions and actions, helping to drive increased sales whilst reducing costs and risks. Brands like Lifebuoy, Dove, Domestos, Knorr and Signal that have made sustainability central to their brand proposition continue to perform well.”
In Foods, the company continues to position its business for long term growth by enhancing the nutritional value of our products and seeking to improve food security, whilst at the same time strengthening the portfolio through the accelerated divestment of non-core food brands such as Skippy. Savory and dressings continued to grow in the first quarter, underpinned by innovations such as Knorr jelly bouillon variants, now in more than 35 markets, and baking bags, now in more than 40 markets. In dressings, Hellmann’s growth was driven by market development activities encouraging new uses of mayonnaise and the launch in Europe of a superior squeeze pack. Hellmann’s celebrates its 100th birthday in the United States this year with activities to strengthen the brand’s ‘real mayonnaise’ credentials.
Spreads declined, driven by lower volumes in a tough promotional environment. Market dynamics are not currently in our favour with consumers switching to alternatives. Despite the success of recent innovations such as Flora Buttery and liquid margarines, which have now been launched in Turkey under the Becel brand, we have more to do to communicate the improved taste and health benefits of our margarines to consumers.
Ice cream was up slightly despite a high prior year comparator and the extremely cold weather conditions which prevailed in much of Europe. Magnum, now a €1 billion brand, continued to make good progress supported by the rollout of Magnum Gold?! to the United States, the rollout of the ‘5 kisses’ limited editions and the new pint format in Europe, and the launch of Magnum Pink and Magnum Black in Mexico and Turkey. Cornetto was relaunched in Europe, Mexico and South East Asia and we introduced a new Cornetto mini variant in Europe whilst Fruttare was launched in the United States.
The turnaround in tea which began last year continued with mid-single digit growth in the first quarter. Improved product quality, stronger mixes and improved in-market execution drove this performance. Lipton Yellow Label again drove growth in Russia, benefiting from patented technology to re-incorporate tea essence and deliver improved taste. This innovation was rolled out to Pakistan and the Middle East during the quarter. The Brooke Bond range of brands performed well in India and PG Tips in the UK grew in a strongly promotional market.
