Unilever sees sales growth despite ongoing cost pressures

Unilever has released its financial results for the first quarter of 2022, revealing a growth in sales despite continued challenges from cost inflation.

For the first quarter, Unilever shared the following results:

• Underlying sales growth of 7.3%
• Beauty & Personal Care sales growth up 7.1%
• Sales grew by 0.7% in Europe
• Turnover increased by 11.8%, including a currency impact of 3.5%

Sales growth in Beauty & Personal Care was helped by Unilever's Prestige Beauty category, which saw double-digit growth in Q1.

Additionally, Deodorants saw "high" single-digit growth, helped by technology-driven innovations behind Dove and Rexona. Hair saw "mid" single-digit growth, prompted by Sunsilk and TRESemmé welcoming price-led growth.

However, due to a period of unprecedented inflation, the company warned it may have to take further pricing action with some impact on volume as a result. Unilever expects cost inflation in the second half of the year to £2.2 billion (€2.7 billion), partially due to the outbreak of war in Ukraine and the related increase in raw material inflation.

The company anticipates underlying sales growth in 2022 to be towards the top end of the previously guided range of 4.5% to 6.5%. Along with underlying operating margin for the first half to be within its guided 2022 range of 16% to 17%.

Alan Jope, CEO of Unilever, said: “We are executing well in a very challenging input cost environment. There is more to do as we navigate our business through unprecedented cost inflation, but we are making good progress. We are committed to sustaining this step-up in our growth and competitiveness.”