The boss of Unilever said it is on track to ‘build a simpler, sharper’ business as its quarterly sales beat expectations.
Chief executive Fernando Fernandez said the future of the business now lies with its beauty and personal care brands after the spin-off of its food business earlier this month.
Sales at the group rose 3.8 per cent in the first three months of the year, beating analyst expectations of 3.7 per cent.
It came as its beauty and well-being division – one of its key focuses – saw sales climb 3.6 per cent, driven by ‘continued strength’ in Dove and Vaseline. Its personal care arm saw sales growth of 3.7 per cent.
A decline in sales across Europe was offset by stronger performances in Latin America and Asia Pacific.
But the Anglo-Dutch conglomerate said its turnover fell 3.3 per cent to £10.9billion as currencies offset booming sales.
Unilever wants to focus on its beauty and personal care products, such as Dove and Vaseline
‘Pricing power remains weak at just 0.9 per cent, developed markets are still subdued, and a heavy FX drag masked much of the underlying strength,’ said Adam Vettesse, market analyst at eToro. ‘Management struck a measured tone, expecting volume to drive the bulk of growth amid softer consumer conditions.’
Full-year guidance was reconfirmed, albeit at the lower end of the range of 4-6 per cent.
Fernandez said: ‘We continue to move at speed to build a simpler, sharper Unilever with a structurally higher growth profile and a brand portfolio fit for the future.’
It comes as the group is set to create a major food powerhouse, when it merges its brands with US rival McCormick in a £11.9billion deal. This will combine brands including Unilever’s Hellmann’s and Marmite, with McCormick’s French’s mustard and Schwarz.
Unilever announced plans to cut 7,500 jobs in April last year and has more recently sold British healthy snack brand Graze to the owners of Candy Kittens.
It has also been acquiring trendsetters like British deodorant seller Wild and soap brand Dr Squatch.
Last year, it spun off its ice cream division, The Magnum Ice Cream Company, which floated in Amsterdam in December.
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