Unilever has published its results for the first half of 2024, with turnover lifting 2.3% to €31.1 billion (A$51.6 billion), with an underlying sales growth of 4.1% and a volume increase of 2.6%.

The strong results come despite a -1.1% impact from currency and -0.7% from net disposals, with growth led by the company's Power Brands, which account for approximately 75% of turnover. The Power Brands, which include Lynx, Ben & Jerry's, Dove, Hellmann's, Knorr, Magnum, Persil, and Wall's, achieved a a 5.7% underlying sales growth (USG) and a volume increase of 4.0%.

Underlying operating profit was €6.1 billion, up 17.1% on the previous year, with underlying operating margin increasing 250 basis points to 19.6%, and gross margin up by 420 basis points to 45.7%.

“We are focused on driving high-quality sales growth and gross margin expansion, led by our Power Brands. Over the first half, we made progress on those ambitions... Strong gross margin progression fuelled increased investment behind our innovations, and resulted in a step-up of our profitability," said CEO of Unilever, Hein Schumacher. "We continue to embed the Growth Action Plan, doing fewer things, better and with greater impact. The implementation of a comprehensive productivity programme and the separation of Ice Cream are key to delivering on that commitment and we are progressing at pace."

Investment in brand and marketing increased by 180 basis points to 15.1%, with a particular focus on Power Brands. The underlying earnings per share (EPS) saw a 16.3% increase, while the diluted EPS went up by 5.4%.

Unilever also announced a 3% increase in its quarterly dividend and commenced a share buyback of €1.5 billion (A$2.5 billion). The company reported a free cash flow of €2.2 billion (A$3.7 billion), reflecting seasonal working capital outflow. The company is currently implementing a productivity programme and is on track with the separation of its Ice Cream business.

Unilever expects its underlying sales growth (USG) for 2024 to be within 3% to 5%, with the majority of the growth driven by volume. The underlying operating margin for the full year is expected to be at least 18%, with increasing investment behind brands.

Year-on-year margin progression in the second half is expected to be smaller than in the first half. The strong gross margin progression in the first half reflects positive contributions from volume leverage, mix and net productivity.