Unilever(UK)(US:UL)2024-04-27 06:22Financial Data and Key Metrics Changes - The company reported underlying sales growth of 4.4% in the first quarter, with volume growth increasing to 2.2% [4][123] - Turnover for the first quarter was €15 billion, up 1.4% compared to the previous year, with underlying sales growth contributing 4.4% [16] - Price growth moderated to 2.2% for the quarter, with a reduction from acquisitions or disposals of 0.9% [10][17] Business Line Data and Key Metrics Changes - Power Brands, which contribute approximately 75% of turnover, achieved underlying sales growth of 6.1%, driven by a strong volume contribution of 3.8% [10][124] - Personal Care grew by 4.8%, with 3.4% from price and 1.4% from volume, particularly strong in North America [12] - Home Care growth was 3.1%, with volume up 4.3% and price down 1.1%, driven by significant volume increases across various categories [13] - Nutrition experienced growth of 3.7%, with price up 4.1% and volumes down 0.4% [14] - Ice Cream growth was 2.3%, with 3.2% in price and a decline of 0.9% in volume [15] Market Data and Key Metrics Changes - Latin America saw a volume growth of 8.1%, with strong performance across Brazil, Mexico, and Argentina [37] - North America experienced double-digit growth in Prestige and Health & Wellbeing, while overall volume growth showed signs of slowing [36][47] - In Europe, volumes remained negative but improved relative to the previous quarter, with a focus on promotional intensity to regain market share [51][110] Company Strategy and Development Direction - The company is implementing a Growth Action Plan (GAP) aimed at delivering faster growth, improving productivity, and enhancing performance [105][119] - A major productivity program has been announced to streamline operations and improve efficiency, with a target of €800 million in cost savings [7][25] - The separation of the Ice Cream business is underway, expected to be completed by the end of 2025, allowing for a more focused portfolio [121][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, citing significant progress in implementing GAP measures [122] - The company remains cautious about upgrading guidance due to unpredictability in price and volume dynamics [61] - Management highlighted the importance of volume growth as a key indicator of the quality of top-line performance [123] Other Important Information - The company is committed to sustainability, focusing on four key areas: climate, plastic, nature, and livelihoods [24][59] - Changes in remuneration measures were discussed, moving towards absolute profit improvement to support brand investments [20][44] Q&A Session Summary Question: Insights on North American market dynamics - Management noted that while there are signs of a slowdown in the overall business, brands like Dermalogica and Hourglass continue to perform strongly [36][37] Question: Performance of Deodorants franchise - Management attributed the strong performance in Deodorants to consistent product quality and successful global rollout strategies [39][40] Question: Pricing dynamics in Latin America - Management explained that pricing in Latin America was low due to strategic cuts in Argentina, but volume growth remains robust [90][91] Question: Market share recovery in Europe - Management indicated that market share losses were primarily due to private label competition, but they expect improvements in the second half of the year [95][110] Question: Impact of Ice Cream separation on financials - Management acknowledged potential tax liabilities from the separation but emphasized that cost savings from productivity programs would offset these impacts [96][101]