In Europe, Unilever is growing only through price increases, but elsewhere the multinational is seeing further volume growth. Growth is driven by the 30 ‘power brands’ that account for 75% of sales.
Europe limping along behind
In the first quarter of this year, Unilever’s sales rose 4.4% to €15 billion. Sales volumes rose by 2.2%: this second volume growth in a row is good news for the company, which in recent years mainly boosted sales with hefty price increases. In Europe, however, volumes continued to decline, mainly due to the poor performance of the food division in Germany and the Netherlands.
The thirty top brands, on which CEO Hein Schumacher wants to focus more strongly, recorded a turnover growth of 6.1%, of which 3.8% was volume growth. As is known, the multinational will divest its ice cream division, with well-known brands such as Magnum and Ben & Jerry’s. The company is also scaling back some of its sustainability targets.
