Unilever reports strong 2024 results amid volume growth
By Felicia Nwosu
Unilever, a leading multinational consumer goods company reported its full-year 2024 results, showcasing a year of significant progress in its transformation journey. The corporation reported robust underlying sales growth of 4.2%, propelled by a 2.9% surge in volume, demonstrating the effectiveness of its strategic initiatives.
Sharing this on its website, it stated that the turnover reached €60.8 billion, a 1.9% increase, despite headwinds from currency exchange and divestitures. The company’s “Power Brands,” representing over 75% of its portfolio, spearheaded this growth, achieving a 5.3% increase in underlying sales and a 3.8% rise in volume. This performance underscores the success of focusing on key, high-performing brands. Reinforcing its commitment to brand building, the company significantly increased brand and marketing investment to 15.5% of turnover, the highest level in over a decade.
The company revealed that profitability also saw substantial improvement, with underlying operating margin expanding by 170 basis points to 18.4%. This was fueled by a 280 basis point increase in gross margin, showcasing enhanced efficiency and cost management. Underlying earnings per share (EPS) rose by 14.7%, reflecting the strong operational performance. However, diluted EPS decreased by 10.6% due to losses from disposals and investments in an accelerated productivity program. The company also generated strong cash flow, with a cash conversion rate of 106% and free cash flow of €6.9 billion.
Hein Schumacher, the chief executive officer commented that these results reflect a year of focused transformation, emphasizing the company’s commitment to becoming a consistently high-performing organization. He highlighted the progress made under the “Growth Action Plan,” which prioritizes doing fewer things better and with greater impact. The CEO noted the strong performance of key brands like Dove, Comfort, Vaseline, and Liquid I.V., attributing it to fewer, bigger innovations.
The global business leader confirmed that the company continues to refine its portfolio, strategically acquiring promising brands in attractive markets, such as K18 and Minimalist, while divesting local food brands like Unox and Conimex to concentrate on core categories. The ongoing productivity program is ahead of schedule, streamlining operations and creating a leaner, more accountable structure. The company is also taking decisive actions in specific regions to address long-standing challenges and transform its go-to-market approach.
According to Unilever, the separation of the Ice Cream division is progressing as planned, with the appointment of a Chair Designate and the announcement of the listing structure. It therefore stated that, it anticipates continued market softness in the first half of the coming year but remains confident in its ability to deliver on its ambitions, citing its refreshed strategy, reinvestment in brands, and robust innovation pipeline.
Expressing optimism ahead, the company expects underlying sales growth to be within its multi-year target range of 3% to 5% for the full year. A modest improvement in underlying operating margin is also anticipated. The company’s performance in 2024 demonstrates its ability to navigate a dynamic market environment while executing its strategic transformation. By focusing on core brands, enhancing productivity, and adapting to evolving consumer preferences, the company is positioning itself for sustained growth and success in the years to come
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