- Consumer goods giant
Unilever beat analyst expectations for the third quarter thanks to rising sales of Ben & Jerry'sice cream , shampoo, and antibacterial cleaners during lockdown. - Sales of tea and Hellmann's products, including mayonnaise, rose, as did sales of skin cleansers.
- Demand for Ben & Jerry's and
Magnum ice cream brands more than offset a significant drop in out-of-home ice-cream sales, Unilever said. - Unilever posted an underlying sales growth of 4.4% — smashing analysts' expectations of 1.3%.
People bought more Ben & Jerry's, mayonnaise, and skin cleansers in lockdown, Unilever said in an earning release on Thursday, fueling better-than-expected sales growth at the consumer goods giant.
Shoppers are also buying more Unilever products online, with e-commerce sales up 76% in the third quarter for the Dutch-English consumer goods company.
Overall underlying sales growth, a key performance metric, was of 4.4%, compared to analysts' predictions of 1.3%. This measure remove changes in currency and deal-making — without adjusting, revenues fell 2.4% to 12.9 billion euros, partly because of fluctuations in currencies.
Unilever saw its strongest underlying sales growth, of 6.7%, in home-care products. Household cleaner sales remained high, particularly antibacterial and germ-killing products. Unilever also launched its bleach brand Domestos in China during the quarter.
Food and refreshment underlying sales also grew because of a rise in home cooking and stay-at-home snacks. Sales of tea and Hellmann's products rose, with the brand's vegan mayonnaise now available in 30 countries. Unilever also reported sales of Ben & Jerry's and Magnum "more than offset the decline in out-of-home ice-cream sales."
Sales of beauty and personal care products, where Unilever generates 41% of its revenue, also grew. While demand for hand hygiene products remained high, it was slightly lower than levels seen in the second quarter, when lockdown was at its peak in many countries.
Sales of skin-cleansing products grew by nearly a fifth, which Unilever credits in part to soap-maker Dove's entry into the antibacterial market. Skin care and deodorants posted small declines because of "restricted living conditions," Unilever said.
Sales of hair products grew overall, with a decline in styling offset by growth in hair wash and care products.
In North America, underlying sales were up 9.1%, even though revenues from Unilever's food-service business dropped as many restaurants and cafes remained shut at the beginning of the quarter.
At-home food and refreshments were a "driver of growth," the company said, alongside hand and home hygiene. This included strong growth of Seventh Generation and health and wellness brand Olly.
Turnover in Europe fell 1.3% because of heavy promotions alongside a significant drop in out-of-home ice-cream sales in Italy and Spain as tourism fell. Sales in China, however, rose because of the success of beauty and personal care products, and Unilever's food sales grew as restaurants and cafes across the country reopened.
Unilever CEO Alan Jope warned that the business environment "will remain unpredictable in the near term."