Unilever achieved slightly better-than-expected underlying quarterly sales after winning back shoppers, the company reported on Thursday.
The consumer goods giant posted its biggest gain in sales volumes in three-and-a-half years thanks to product innovations and slower price increases enticing customers.
Big brands such as Unilever and Nestlé had struggled to regain sales volumes after raising prices during high inflation to offset increased production costs.
Customers balked at higher prices and instead opted for cheaper private-label alternatives.
However, as inflation has eased and price hikes have slowed, companies are starting to win shoppers back.
Unilever said on Thursday it was keeping its full-year outlook for 3-5% underlying sales growth and an underlying operating margin of at least 18%.
The maker of Dove soap and Hellman’s condiments reported a 4.5% rise in third-quarter underlying sales, beating analysts’ average forecast of a 4.2% increase, according to a company-provided consensus.
Underlying price growth for the quarter was 0.9% while underlying volume sales growth was 3.5% – its biggest increase since the first quarter of 2021 when Unilever reported a 4.7% rise in volumes.
Analysts had expected a 1% increase in prices and a 3.2% rise in volumes for the third quarter.
Chief executive of the company Hein Schumacher said in a statement, “We have delivered a fourth consecutive quarter of positive, improved volume growth, with each of our business groups driving higher volumes year-on-year.”
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