Unilever, Danone and their volumes increase to exceed third-quarter financial expectations
October 27, 2024
In an unfavorable and difficult market, the two international consumer goods companies exceeded their financial forecasts. Nestlé's second financial downgrade of the year came only last weekdue to weaker consumer demand.
Unilever reports third quarter financial results
Unilever's sales and volume increased by 3.6%, the company's biggest quarterly increase in nearly four years. However, the increase was mainly driven by Unilever's non-food businesses.
Revenues for brand owners Marmite and Hellmann's fell by 2.81t/yr to 15.2 billion euros. However, currency was a factor, and 1.51t/yr of the decline can be attributed to net disposals.
Volume sales of food products increased by 0.4%, while value sales increased by 1.5%. However, ice cream sales increased by 9.8% and increased by 6.7% in terms of value and volume.
Unilever's full-year outlook remained unchanged despite a slight increase in sales. The company expects growth in the range of 3-5%, with volume, not price, being the driver.
Unilever posts positive financial results for the first time in more than a decade Hein Schumacher, CEO of Hein Schmacher, has joinedAfter announcing that the company was going to transform, the shock decision was taken to separate the Ice Cream division The Creams division was separated from the main brand earlier this year.
Unilever Ice Cream Business
Schumacher pledged to invest 1.2 billion euros in new product development platforms over the next three years, saying the business was taking off. Twelve long-term, large-scale innovation bets that will further stimulateIts financial results.
Schumacher said: "We are still at the beginning of the transformation process as we implement the Growth Action Plan. We are focused on doing fewer things better with greater impact."
The company began to recognize the benefits of the new strategy, brand investments and decisive actions the company had taken in a challenging market.
As part of our overall group transformation, we have implemented a productivity programme and separated the divisions. [the] Ice Cream [business]Both are proceeding as planned.”
The ice cream business was to be created as a "legal entity", with a separate operational and financial model.
Unilever Q3 figures in 2024
- The price increase for the period was 0.9%
- Major brands drive sales up 5.4%
- 4.3% – Growth in volumes of major brands
- Other brands: Volume growth of 1.3%
- Unilever turnover: 15.2 billion euros
- Beauty contributes 21% of the total turnover
- Contribution to Personal Care turnover: 22%
- Contribution of 20% to Home Care turnover
- Nutrition contributes 21% to turnover
- Contribution of ice cream to turnover
Danone Third Quarter Financial Results
Danone, owner of the Evian and Activia water brands, confirmed that full-year finances were also on track.
Volumes also increased, but not by 2.9% as expected. Sales increased by 4.2% compared to analysts' forecasts.
China, North Asia and Oceania, with 8.%, recorded the most impressive sales growth in the third quarter.
Danone Water Sales Q3 2024
Water sales in Europe increased by +4.3% in the third quarter, compared to stable sales in specialized nutrition and EDP.
“We continue to achieve broad-based quality growth, and volume/mix and price have been positive across all categories,” said CEO Antoine de Saint-Affrique.
Our focus on consumer- and patient-centric science, coupled with strong market execution, continues to pay dividends, as evidenced by the continued success of our platforms.
The CEO acknowledged the challenging market conditions and said the company would rely on its fundamentals to drive growth.
Danone T3 in figures:
- CA Europe +1.4%
- +5.8% – CA North America
- Actimel's comparable growth is +4.1%
- CA EDP Europe: €1.6 million
- €770 million in Specialized Nutrition turnover in Europe
- CA Eaux Europe: €589 million
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