Promotional spend drives growth at Unilever

C&T giant Unilever has posted encouraging Q2 results to June 2009, bucking the global credit crunch that has seen other manufacturers fall by the wayside. The company posted volume growth of 2% while underlying sales grew by 4.1%, a much better margin than previously forecast.

The personal care division of the business experienced Q2 turnover of €2.996m, with underlying sales growth of 5.4%; the division saw underlying sales growth of 4.6% for the first half of 2009.

An increased spend on advertising and promotions by the company has been acknowledged as a driver of much of the sales growth with skin cleansing said to have performed well due to “new functional advertising for the Dove bar, the roll-out of Lux Soft Skin in Latin America and campaigns that address current heightened needs for hygiene.”

It was the first time in five years that Unilever had experienced volume growth in Western Europe, with sales volume increasing 1% in this region for the second quarter. Meanwhile the Americas saw a rise of 1.6% but were pipped to the post by Asia, Africa and Eastern Europe that saw a rise of 3.3%.

Paul Polman, chief executive officer who took over in January this year said: “While conditions remain difficult in many markets, I am encouraged by the return to volume growth across all regions and the majority of countries and categories. More of our brands are improving share again behind strong innovations, greater consumer value, increased marketing support and better execution.”