Unilever food volumes sluggish, but ice cream shines ahead

Global CPG giant Unilever’s full-year 2024 financial report is strong, with overall sales up 4.2%, led by power brands’ growth of 5.3%.

Volumes across the board ramped up 2.9%, while overall price growth sat at a respectable 1.3%, indicating CEO Hein Schumacher’s ‘Growth Action Plan’ is delivering on its promise to drive growth through volume and not value.

Turnover rose 1.9% to €60.8bn, with 0.7% attributed to currency and 1.5% from net disposals.

As part of the growth plan, Schumacher has set about pivoting the business’s focus on key, ‘30 Power Brands’, which represent 75% of the business.

Unilever’s 2024 food sales “We continue to sharpen our portfolio, allocating capital to premium segments by acquiring scalable brands in attractive markets, such as K18 and Minimalist, and announcing the divestment of local food brands such as Unox and Conimex, as we focus our Foods portfolio on cooking aids and condiments categories,” he said.

All four key business segments – beauty & wellbeing, personal care, home care and food – put on across-the-board growth.

Food’s sales rose 2.6%, with volumes up just 0.2% and underlying price growth rising 2.4%, totting up to €13.4bn in revenue.

Underlying growthNorth AmericaLatin AmericaEuropeAPACSales 5.3%6%4.3%3.1%Volume4.1%3.9%3%1.8%Price1.1%2%1.2%1.3%Of group turnover22%15%20%43%Also read → Why is Unilever obsessed with growing in India?The behemoth’s cooking aids grew mid-single digits, with Knorr bouillon and seasonings leading the drive. The business also recently announced plans to bolster its mini meals segment.

Condiments, with the Hellmann’s flavoured mayo range expansion a core focus, put in low-single digit growth.

Knorr and Hellman’s are Unilever’s two largest food brands, accounting for 60% of turnover.

The division’s foodservice business grew high-single digits, the result of Unilever’s targeted expansion and focus to bolster the arm.

There will be additional focus on refining the food portfolio in 2025, following the sale of Unox and Zwan. It will reduce the number of items and focus on growing power brands within the food portfolio, said CFO Fernando Fernandez.

Unilever’s ice cream headquarters revealedIce cream, which the business was seeking a new home for, turned over €8.3bn on the back of 3.7% underlying sales growth and a 1.6% volume hike. Underlying price growth reached 2.1%.

“The separation of ice cream remains on track and we are making good progress on the key workstreams,” said Schumacher.

Jean-Francois van Boxmeer was announced chair designate for the separated ice cream business this morning, which will be carried out by the end of 2025 through listing in Amsterdam, London and New York.

Unilever’s ice cream business will be incorporated in the Netherlands, with is headquarters in Amsterdam.

Van Boxmeer is currently chair of Vodafone and non-executive director of Heineken, where he was CEO for 15 years.

Ice cream would face challenges in the coming year, with cocoa pricing one of the leading strains, said Fernandez.

Market growth overall slowed over the course of 2024 and Schumacher believes 2025 will remain flat for the first half at least. However, Unilever expects underlying sales growth for 2025 to be within a 3% to 5% range.