Demand from at home boosts Unilever’s results.
LONDON: Similar to numerous other food and beverage producers, Unilever gains advantages from customers being indoors during the COVID-19 outbreak. The management predicts that going forward, even as more markets open and more people are vaccinated, demand for food to go will stay above pre-COVID levels.
Unit sales for Foods & Refreshment increased to €4.7 billion ($5.7 billion) in the quarter from €4.4 billion ($5.3 billion) in the corresponding period of the previous year.
During a call with investors on April 29, Alan W. Jope, the CEO, stated, “Foods & Refreshment did have a very good quarter with nearly 10% USG (underlying sales growth), over 7% volume growth, and good price growth at 2.3%.” Due to the continued high demand for home cooking, particularly ice cream, in-home growth was once again double digit. With growth of more than 30%, Ben & Jerry’s maintained its excellent overall performance. And when we introduced Double Gold Caramel Billionaire, our latest magnum flavor, across sticks and pint forms, Magnum saw double-digit growth.
“After achieving double-digit growth and achieving its goal of combating food waste, Hellman’s debuted with its first-ever Super Bowl advertisement in the United States. Additionally, our vegan mayonnaise is currently available in 30 markets for both foodservice and retail. We’re expanding the selection to include flavored vegan versions and squeeze bottle style, which are being introduced in important regions.
The foodservice-focused divisions of Unilever saw growth throughout the quarter, although it is still below 2019 levels.
“As and when restrictions are relaxed, we’ll be working with our partners to fully leverage the sales acceleration,” Mr. Jope stated.
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Graeme The company’s strength lies on the North American market, according to Chief Financial Officer David Pitkethly.
He declared, “We are still seeing strong signs of North America emerging from the crisis.” Foods consumed at home are still in high demand, and our business outside the house is rebounding more quickly than we anticipated. Foods & Refreshment consequently had double-digit increase. We still expect this to become negative in the second quarter as we begin to lap the higher base, but on a two-year stack basis, we are still strong.
In the previous year, Unilever’s overall quarterly sales were €12.4 billion ($15 billion), whereas this year they were €12.3 billion ($14.9 billion). Exchange rates were a challenge for the business.
In the future, Mr. Pitkethly predicted, “there will be volatility in how regions adapt to the pandemic and when and how they emerge from it.” The financial instability that follows, continued societal limitations, and vaccination rates will all continue to have an impact on the growth rates of individual markets, both favorably and unfavorably.
All things considered, though, we’re in a strong position for long-term growth in all of our areas, and the steps we’re taking to increase operational excellence and boost competitiveness will guarantee that we keep expanding into new markets.