02.14.22
Unilever has announced its full year results for 2021 with underlying sales growth of 4.5%--its fastest underlying sales growth in nine years.
Turnover was up 3.4% and underlying operating profit increased 2.9%. Underlying EPS inched forward 5.5%.
In the U.S., growth returned to competitive levels, with strong contributions from Prestige Beauty, functional nutrition and food solutions. India grew double-digit with balanced volume and price and strong actions on savings and mix. China grew double-digit, led by volume, with growth broad-based across categories and channels, especially e-commerce.
Latin America grew high single-digit led by price with flat volume in a high inflation market. South East Asia declined following tough Covid-19 related restrictions throughout the year and weak competitive performance in Indonesia. Europe grew slightly from both price and volume.
Prestige Beauty delivered strong double-digit growth across all brands as channels reopened, with e-commerce a big contributor.
All categories delivered good growth apart from skin cleansing which declined following elevated demand in the prior year.
Skin care grew high single-digit with channels reopening in 2021. Vaseline performed strongly throughout the year, supported by several premium innovations across brightening, therapeutics and hydration. Deodorants grew as the market continued to recover, with good growth and restored competitiveness in North America. Dove refillable deodorant launched in the U.S. and has been well-received by consumers.
Hair care grew mid-single-digit with Sunsilk, Dove and Clear contributing and styling in North America being restored to competitive growth. Oral care grew with good performance in South Asia and Africa. Prestige Beauty grew double-digit with all brands benefitting from e-commerce and a recovery in beauty channels compared to the prior year. New innovations in Prestige Beauty include Dermalogica’s biolumin-c and sound sleep cocoon and Ren’s zero waste packaging.
Underlying operating margin in Beauty and Personal Care was flat, with high material inflation in palm oil having a particularly high impact on gross margin, despite stepped up pricing. Brand and marketing investment was lower overall due to reductions in Europe and South East Asia where Covid-19 restrictions impacted market growth. Unilever invested more in the U.S. and China, and benefitted from efficiencies in advertising production costs.
The company expects very high input cost inflation in the first half of over €2 billion. This may moderate in the second half to around €1.5 billion, although there is currently a wide range for this that reflects market uncertainty on the outlook for commodity, freight and packaging costs.
Turnover was up 3.4% and underlying operating profit increased 2.9%. Underlying EPS inched forward 5.5%.
In the U.S., growth returned to competitive levels, with strong contributions from Prestige Beauty, functional nutrition and food solutions. India grew double-digit with balanced volume and price and strong actions on savings and mix. China grew double-digit, led by volume, with growth broad-based across categories and channels, especially e-commerce.
Latin America grew high single-digit led by price with flat volume in a high inflation market. South East Asia declined following tough Covid-19 related restrictions throughout the year and weak competitive performance in Indonesia. Europe grew slightly from both price and volume.
Prestige Beauty delivered strong double-digit growth across all brands as channels reopened, with e-commerce a big contributor.
Beauty & Personal Care
Beauty & Personal Care underlying sales grew 3.8%, with 3.0% from price and 0.8% from volume.All categories delivered good growth apart from skin cleansing which declined following elevated demand in the prior year.
Skin care grew high single-digit with channels reopening in 2021. Vaseline performed strongly throughout the year, supported by several premium innovations across brightening, therapeutics and hydration. Deodorants grew as the market continued to recover, with good growth and restored competitiveness in North America. Dove refillable deodorant launched in the U.S. and has been well-received by consumers.
Hair care grew mid-single-digit with Sunsilk, Dove and Clear contributing and styling in North America being restored to competitive growth. Oral care grew with good performance in South Asia and Africa. Prestige Beauty grew double-digit with all brands benefitting from e-commerce and a recovery in beauty channels compared to the prior year. New innovations in Prestige Beauty include Dermalogica’s biolumin-c and sound sleep cocoon and Ren’s zero waste packaging.
Underlying operating margin in Beauty and Personal Care was flat, with high material inflation in palm oil having a particularly high impact on gross margin, despite stepped up pricing. Brand and marketing investment was lower overall due to reductions in Europe and South East Asia where Covid-19 restrictions impacted market growth. Unilever invested more in the U.S. and China, and benefitted from efficiencies in advertising production costs.
Outlook for 2022
Unilever expects underlying sales growth in 2022 to be in the range of 4.5% to 6.5%. Pricing will continue to be strong, with some impact on volume as a result.The company expects very high input cost inflation in the first half of over €2 billion. This may moderate in the second half to around €1.5 billion, although there is currently a wide range for this that reflects market uncertainty on the outlook for commodity, freight and packaging costs.
