Unilever's 2024 marketing spends grow 15.5% at $942m,'highest level in over a decade'

FMCG giant Unilever has announced its full-year financial results for 2024. The conglomerate saw underlying sales growth of 4.2%, led by 2.9% volume growth. Its turnover increased 1.9% to €60.8 billion with -0.7% impact from currency and -1.5% from net disposals. Its power brands (>75% of turnover) led growth with 5.3% USG.

The conglomerate’s brand and marketing investment soared 15.5% to 120bps, its highest level in over a decade. “Improved gross margin fuelled further increases in brand and marketing investment behind a strong and focused innovation programme. Investment was up 120bps to 15.5% of turnover, an increase of $942 million. Overheads reduced by 10bps, as a result of tighter cost control and savings in the second half from the productivity programme,” said the company in its official statement.

Underlying operating profit was $11.72 billion, up 12.6% versus the prior year. Underlying operating margin increased 170bps to 18.4%. This step-up in profitability contributed to a 190bps increase in underlying ROIC to 18.1%.

Its Beauty & Wellbeing grew underlying sales by 6.5%, with volume growth of 5.1% driven by strong growth across its Power Brands. Personal Care grew 5.2% with 3.1% volume growth, led by strong, innovation-led sales growth of Deodorants. Home Care underlying sales increased 2.9%, with 4.0% volume growth more than offsetting the price decline linked to commodity cost deflation.

“The separation of Ice Cream is on track to complete by the end of 2025. We are making progress on the key workstreams, including the legal entities set up, implementing the standalone operating model and preparing the carve-out financials,” said Unilever about its separated ice cream business, which has appointed Jean-Francois van Boxmeer as Chair Designate.

"Today’s results reflect a year of significant activity as we focused on transforming Unilever into a consistently higher performing business. All Business Groups delivered positive volume growth for the year. The steps we have taken in 2024, including the launch of our refreshed GAP2030 strategy, further reinvestment in our brands and strong innovation pipelines leave us better positioned to deliver on our ambitions in the years ahead," said Hein Schumacher, Chief Executive Officer.