Unilever has filed its Q4 and full-year results and said that its underlying sales growth (USG) was 4.2%. But turnover on a reported basis was up only 1.9% at €60.8 billion.

Underlying operating profit jumped 12.6% to €11.2 billion, while reported operating profit was actually down 3.7% at €9.4 billion. For the fourth quarter USG increased 4% while turnover dipped 0.1% to €14.2 billion.

The news comes as it has also emerged that the company is close to announcing the purchase of plastics-free premium cosmetics brand Wild.

The six-year-old brand could be acquired from its founders and early-stage investors in a £230 million deal, which would be one of the firm’s most significant acquisitions for a while.

Wild sells refillable personal care products on a DTC basis with its most recent account (for 2023) showing sales up 77% at almost £47 million. 

Back with Unilever’s results, the underlying and reported figures differ as the company continues to reshape its business, most particularly it’s demerging its giant Ice Cream operations with a separate stock exchange listing for them.

Looking specifically at the two divisions relevant to us — Beauty & Wellbeing and Personal Care — the former saw USG up 6.5% with reported turnover up 5.5% at €13.2 billion. The latter increased USG by 5.2%, but fell 1.5% on a reported basis to €13.6 billion. The two divisions account for 22% of group turnover each. 

Beauty & Wellbeing delivered a strong full-year performance, with the underlying sales rise divided into a volume increase of 5.1% and price rises accounting for 1.3%. Volume growth was broad-based with strong performances from its Power Brands including Sunsilk, Dove, Vaseline, Ponds, Liquid I.V. and Nutrafol. 

In Q4, Beauty & Wellbeing grew 5.2% with a 3.9% volume uplift.

The full-year performance reflects the ongoing premiumisation of its core Hair Care and Skin Care portfolio and the continued strength of its Prestige Beauty and Wellbeing portfolio, which combined, accounted for around 30% of Beauty & Wellbeing’s turnover.

That said, Prestige Beauty grew in ‘only’ mid-single-digits reflecting a slowdown in the US beauty market. Hourglass and Tatcha grew in double-digits while other brands including Paula’s Choice delivered low growth. 

During the year, it completed the acquisition of K18, a premium biotech hair care brand, which grew in double-digits and will be included in underlying sales growth from February 2025.

Underlying operating margin improved 70bps with strong gross margin improvement partially reinvested in increased brand and marketing investment.

In Personal Care, Dove, which makes up 40% of the division’s turnover, grew in high-single-digits with the successful launches of a new range of whole-body deodorants and a serum shower collection, using active face care ingredients in body wash formats. 

Skin Cleansing grew in low-single-digits with volume and price rises. Good growth in Dove was partially offset by declines in Lifebuoy and Lux, driven by challenges in Indonesia, China, and India.