Unilever improves half-year results, with price rises driving continued growth

The Unilever group has released its latest half-year results that have shown key growth for its portfolio, including major ice cream business Wall’s, Ben & Jerry’s, and Magnum brands, despite notable pressure on production and ingredients costs, reports Neill Barston.

Releasing its latest half year figures, the company confirmed its turnover for the period increased 2.7% to €30.4 billion, with underlying operating profits improving 3.3% to €5.2 billion, with margins up 17%. It described the performance for the first half of the year as being ‘solid.’

Notably, industry observers noted that the company had enjoyed notable success largely due to a policy of price rises – which has come amidst a wider backdrop of major inflation around the world – including the UK, where many shopping segments, including dairy-based products having seen costs escalate by more than 20%.

According to the company, its top geographical areas for the period were the US, Germany, China,  UK and Italy, with the business splitting its operations across five divisions of beauty and wellbeing, personal care, home care, nutrition, and ice cream.

As reported last month, the company confirmed that it has extended its long-term deal with Barry Callebaut for the sourcing of its cocoa, which builds on an initial deal that was signed between the two companies in 2012.

Hein Schumacher, Chief Executive Officer of Unilever, welcomed the latest results as showing a positive sense of momentum, despite the wider backdrop of sector-wide challenges.

He said: “Unilever’s performance in the first half highlights the qualities that attracted me to the business: an unmatched global footprint, a portfolio of great brands and a team of talented people. Leveraging our core strengths to drive improved performance and competitiveness is our absolute priority.”