Post by : Badri Ariffin

Unilever’s third-quarter performance brought a welcome boost for investors, as the consumer goods giant posted underlying sales growth of 3.9%, slightly above market forecasts. The growth was largely powered by its beauty and wellbeing division, where premium hair care brands like Dove, K18, and Nutrafol saw double-digit gains, particularly in North America.

The upbeat results underline CEO Fernando Fernandez’s ongoing push to transform Unilever into a leaner, more profitable business. Since taking charge in March, Fernandez has focused on premiumising Unilever’s product lines, cutting costs, and reviewing non-core assets for potential sales. The strategy aims to lift margins amid persistent economic uncertainty and cautious consumer spending.

Shares of Unilever traded about 1.5% higher on Thursday, extending a modest recovery since Fernandez’s appointment. The stock has outperformed Nestlé—currently undergoing major job cuts—but remains behind rivals Danone and Reckitt in overall returns.

North America emerged as the standout region this quarter, delivering a 5.5% rise in sales thanks to strong momentum in personal care and beauty. “North America absolutely stole the show,” noted several analysts, as Unilever moved closer to its goal of achieving 2% volume growth. Excluding its ice cream division, the company reached 1.7% volume growth in the quarter.

Meanwhile, sales in the beauty and wellbeing unit jumped 5.1%, led by growth in Vaseline, Liquid I.V., and Hourglass, in addition to its thriving hair care lines. Across all segments, pricing rose by 2.4%, again surpassing expectations.

Unilever’s ice cream business, which includes Magnum, Ben & Jerry’s, and Cornetto, saw a 3.7% sales increase but faced delays in its planned spin-off. Originally slated for November 10, the separation was pushed back due to the U.S. government shutdown, though it remains on track for completion by year-end.

In India, however, growth remained muted. Tax reductions on consumer goods led to temporary disruptions as retailers cut inventories and shoppers waited for price adjustments. Unilever expects trading to normalise from November, keeping its full-year sales growth guidance steady at 3–5%.

With a renewed focus on high-margin beauty and personal care and strong momentum in North America, Unilever’s latest results mark a steady step forward in its turnaround journey.

#Global