Beauty, Wellbeing Sales Fuel Third-quarter Growth at Unilever

LONDON – Beauty and wellbeing sales are steaming ahead at Unilever, and drove underlying group sales growth up 3.9 percent to 14.7 billion euros in the third fiscal quarter.

The consumer giant said in a trading update on Thursday that in the the three months to Sept. 30, the beauty and wellbeing division reported underlying sales growth of 5.1 percent to 3.2 billion euros.

Growth was the highest in the group, which saw overall sales at actual exchange fall 3.5 percent year-on-year due to net disposals and currency headwinds.

Among the top performers in the beauty and wellbeing division were Dove hair, Vaseline, Liquid I.V., Nutrafol, Hourglass and K18, all of which notched double-digit growth.

Prestige beauty, which sits within the division, grew a mid-single digit as the overall market showed gradual improvement. Paula’s Choice and Dermalogica returned to low single-digit growth after declining in the first half.

In wellbeing, Liquid I.V.’s sugar-free range, which launched in mid-2023, continued to perform “very well,” according to Unilever, and now accounts for nearly 30 percent of total brand sales.

In the personal care division, underlying sales grew 4.1 percent to 3.3 billion euros, with Dove’s premium innovations in deodorants and skin cleansing continuing to perform well.

Fernando Fernandez, Unilever chief executive officer, said the outlook remained unchanged for the full year, with underlying sales growth landing between 3 percent and 5 percent.

Second-half growth is expected to be ahead of the first half, despite subdued market conditions, he added. Growth will reflect “continued strength” in developed markets and “improving performance” in emerging markets.

The group is also looking at an improvement in underlying operating margin for the full year, with second half margins of at least 18.5 percent, a “significant improvement” versus the second half of 2024.

Fernandez said that in the third quarter, there was a return to growth in emerging markets such as Indonesia and China, driven by Unilever’s power brands such as Dove, Vaseline and Lux.

He reiterated Unilever’s plans to focus on beauty and wellness.

“We’re shaping a brand portfolio that’s built for the future – with more beauty, wellbeing and personal care, prioritizing premium segments and digital commerce, and anchoring our growth in the U.S. and India,” he said.

“By putting desire at scale at the core of our strategy, and executing with excellence across every channel, we’re setting Unilever up to win,” Fernandez said.

The underlying growth outstripped analysts’ expectations of 3.7 percent

RBC Capital Markets called the third-quarter numbers “reassuring,” with volume and price mix in line with expectations and “encouraging momentum” in China and India, both of which are expected to accelerate further in the fourth quarter.

Shares were broadly flat at 46.70 pounds on the London Stock Exchange at 8:20 a.m. British Summer Time.