THE WHAT? Unilever has raised prices by 11.2 percent over the past few months, and is expecting to do so again throughout 2022 due to the ‘uncertain and volatile’ global economy and cost inflation.
THE DETAILS The price hike allowed Unilever to report sales growth of 8.1 percent in the first half of 2022, with the price rise offsetting the falling volumes of goods sold.
Turnover increased 14.9 percent, including a currency impact of 5.6 percent, underlying operating margin of 17.0 percent, a decrease of 180bps driven by input cost inflation.
Beauty & Personal Care grew 7.5 percent, driven by price and continued strong growth in Prestige Beauty and Health & Wellbeing, which is Unilever’s vitamins, minerals and supplements business.
Strong price increases landed across most categories, and were particularly pronounced in Latin America, South Asia and Turkey. Deodorants delivered double-digit growth, with skincare growing in low single digits on the back of a strong prior year base.
THE WHY? Alan Jope, CEO, said, “We have made further progress against our strategic priorities. We are maintaining strong investment in our brands, supporting 9.4% underlying sales growth in our billion+ Euro brands. eCommerce sales now represent 14% of turnover, up from 6% in 2019. Of our three priority markets, the USA and India again grew strongly, while sales in China were affected by the lockdowns in the second quarter.
“We continue to reshape our portfolio, completing the sale of the global tea business ekaterra, and the acquisition of Nutrafol, a leading provider of hair wellness products. Prestige Beauty and Health & Wellbeing, now 4% of Group turnover, again grew double-digit.”
The company expects 2022 underlying sales growth to be above the previously predicted range of 4.5 percent – 6.5 percent, driven by price with ‘some pressure on volume.’
Aesthetic products generally refer to a broad category of items designed to enhance or improve one's appearance, often focusing on skincare, beauty, and personal grooming. These products are typically used to maintain or enhance physical attractiveness and may include a wide range of items intended for both professional and personal use. Here are some common types of aesthetic products:
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Skincare Products: Including cleansers, moisturizers, serums, and treatments designed to address various skin concerns such as acne, aging, hyperpigmentation, and sensitivity.
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Cosmetics: Makeup products such as foundations, concealers, eyeliners, lipsticks, and eyeshadows used to enhance facial features and achieve desired looks.
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Hair Care Products: Shampoos, conditioners, styling products, and treatments to maintain and improve the health and appearance of hair.
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Fragrances: Perfumes and colognes used to enhance personal scent and attractiveness.
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Dental Care Products: Toothpaste, mouthwash, whitening treatments, and dental floss aimed at maintaining oral hygiene and enhancing smile aesthetics.
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Personal Grooming Tools: Including razors, electric shavers, trimmers, and grooming kits used for hair removal and personal hygiene.
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Beauty Devices: Devices such as facial cleansing brushes, LED light therapy masks, and microcurrent devices designed for at-home skincare treatments.
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Nutritional Supplements: Supplements aimed at promoting skin health, hair growth, and overall well-being, often containing vitamins, minerals, and antioxidants.
