Price rises boost Unilever revenues

Unilever has reported a surge in revenue for the third quarter, with underlying sales up 8.3%. The company says it has been able to push through price rises without hurting sales volumes.

The packaged goods giant, which makes Dove, Persil and Flora, says it has boosted spend on advertising and promoting its brands by £80m over the previous nine months. However, it adds that, as a percentage of sales, spend on advertising was 0.5 percentage points lower than in the first nine months last year and 0.7 percentage points lower than in the third quarter. Unilever says this reflects “strong, price-driven sales growth.”

A combination of price rises and cost saving has pushed up quarterly operating margins by 0.3%. Unilever’s outgoing chief executive Patrick Cescau (pictured) says: “Despite the price rises needed in light of unprecedented cost increases, our volumes are holding up.”

Cescau adds that efficiency programmes, under the One Unilever streamlining initiative, saved £635m in the first nine months. Pre-tax profits for the third quarter rose by 83% to £1.99bn, but this was boosted by profits from disposals including the company’s US laundry businesses. The company says it expects to deliver underlying sales growth “well in excess” of its long-term target for the year.

In September, Unilever named NestlÈ’s Patrick Polman as Cescau’s successor. Polman will formally take over at the end of the year.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here