Fast-moving consumer goods company Unilever announced on October 27 that total underlying sales for the third quarter rose 10.6 percent to EUR 15.9 billion (USD 15.75 billion), on the back of double-digit gains in Asia-Pacific Africa, the company’s largest market.
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The London-headquartered company said underlying sales in its Asia Pacific Africa market surged 12.5 percent to EUR 7.1 billion equating to 45 percent of Unilever’s global sales for the three months.
The company said sales in the region were pushed on by strong performances from its home care and ice cream segments. By market, India showed strong growth with double-digit pricing and positive volumes, “supported by innovations and continued strength of its premium portfolio.”
Likewise, China grew low single-digits, reflecting some lockdown effects, for a result that was “more muted” than in previous years.
Elsewhere, Indonesia delivered price-driven growth, while volumes were affected by a reduction in stock-in-trade levels.
Finally, Vietnam, the Philippines and Thailand delivered double-digit growth which was boosted by lapping the lockdowns in the prior year
For the first nine months of the year, Asia Pacific Africa sales totalled EUR 20.9 billion, up 10.1 percent, compared to the same period last year.
“Unilever has delivered another quarter of growth in challenging macroeconomic conditions. Underlying sales growth improved to 10.6 percent, led by further increases in pricing with only a limited impact on volume, and we now expect underlying sales growth for the full year 2022 to be above 8 percent” said Unilever CEO, Alan Jope.
“We have delivered growth in each of our five business groups, led by a strong performance from our billion+ Euro brands, growing 14 percent in the quarter. Strong pricing allows us to continue to drive increased investment behind our brands. Our organisation is now better structured to deliver consistent growth through a simpler, more category-focused operating model. The full benefits will be realised over time, and we are seeing encouraging early signs of improved accountability and faster decision-making.
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“The global macroeconomic outlook remains mixed, and we expect the challenges of high inflation to persist in 2023. The delivery of consistent growth remains our first priority,” concluded Jope.