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Unilever Skincare, Prestige Beauty Sales See Robust Growth in H1 – WWD

LONDON – The reopening of makeup and beauty stores as the lockdown is eased has given a boost UnileverOverall sales for the first half of the year, with prestige beauty and skin care products both growing at double-digit rates in the six months to June 30.

Unilever said in its first half update on Thursday that sales were up 5.4% on an annual basis to 25.8 billion euros. On a reported basis, they are generally flat, up 0.3%, mainly due to currency fluctuations.

Core revenue in the second quarter rose 5% to €13.5 billion and up 1.2% on a reported basis.

Net profit for the first half of the year fell 4.1 per cent to £3.39 billion, the company said was driven by investment and input cost inflation due to rising materials, packaging and distribution costs globally.

Share in Unilever fell 4.4% to 41.14 pounds in mid-morning trading Thursday.

Managing director Alan Jope described first-half operating performance as “strong”, with core sales growth of 5.4% “driven by our continued focus on operational excellence”. “.

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Unilever beauty and personal care products.

He said the company is making “good progress” compared to the strategic choices it outlines earlier this year, including growing its portfolio into high-growth spaces, such as prestige beauty.

He added that sales of prestigious beauty and functional nutrition products had grown strongly, adding that Unilever’s tea business was “basically done”.

Unilever said it will exit the tea business through an initial public offering, sale or partnership.

Jope added that Unilever is still exploring its options for the new Elida Beauty group. Earlier this year, Unilever incorporated non-strategic personal care brands including Q-Tips, Caress, Tigi, Timotei, Impulse and Monsavon, and is seeking to “maximize value creation” of the group, which has a total turnover of around 600 million euros in 2020.

The company said Unilever’s e-commerce business grew 50% in the first six months of the year, and the channel now accounts for 11% of revenue.

Competitive growth remains a priority for Unilever, and the company says it is confident it can deliver core sales growth in 2021 “within” multi-year 3% to 5% and despite the comparisons. difficulties in the second half of the year.

Unilever will measure growth in the second half of the year against the increase in sales in some divisions due to COVID-19 restrictions last year.

The company added that the operating environment across its markets remains “unsettled”, with restrictions on daily life continuing around the world, “impacting channel dynamics”. , sales structure and consumer behavior.”

In the Beauty and Personal Care division, underlying revenue grew 3.3% to 10.4 billion euros in the first half, with 4.2% growth in the second quarter. Unilever said the increase came from an increase in personal care consumption “as living restrictions are eased in some of our markets.”

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Unilever bought Paula’s Choice in June.
Image courtesy of Unilever

In half, skin care grew in double digits and deodorant returned to growth, as people started going back to work and socialize. In skincare, the Vaseline and Ponds brands both experienced double-digit growth.

Skin cleansing has declined as the company faced tough comparisons with last year, when it saw a dramatic increase in demand due to the advent of COVID-19. Unilever noted that premium brand Shea Moisture grew at double-digit rates in the US in the first half of the year.

Prestigious beauty brands have seen double-digit growth, driven by higher store visits. As reported in June, Unilever has acquired the leading digital skincare brand Paula’s Choice, calling it a scientific pioneer with no jargon, highly effective ingredients, and cruelty-free products.

https://wwd.com/business-news/financial/unilever-skincare-prestige-beauty-sales-robust-growth-h1-1234886612/ | Unilever Skincare, Prestige Beauty Sales See Robust Growth in H1 – WWD

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