$Unilever (UL.US)$ reported an underlying sales growth of 9.1% in the first half of FY23, with a 9.4% price increase and a (0.2)% decline in volume.
Turnover increased 2.7% to €30.4 billion, with -3.2% from currency and -2.7% from disposals net of acquisitions.
Segment Sales: Beauty & Wellbeing grew underlying sales by 9.1%, Personal Care underlying sales were up 10.8%, Home Care increased 8.4%, Nutrition climbed 10.4%, and Ice Cream underlying sales gained 5.8%.
Gross margin increased by 30 basis points despite €1.6 billion of net material inflation and increased production and logistics costs.
Underlying operating profit was €5.2 billion, a 3.3% increase versus the prior year. Underlying operating margin improved by 10 basis points to 17.1%.
The percentage of business winning market share on a rolling 12 month-basis has reduced to 41%, reflecting the impact of a 17% SKU reduction, pricing dynamics, and consumer shifts in certain markets.
"The task ahead is to leverage these core strengths – supported by our simplified operating model – to drive improved performance and competitiveness," said CEO Hein Schumacher.
Outlook: Unilever expects underlying sales growth for the full year to be above 5%, ahead of its multi-year range.
It sees net material inflation (NMI) for 2023 of around €2 billion of which €0.4 billion is anticipated in the second half.
Price Action: UL shares are trading higher by 4.82% at $53.97 in premarket on the last check Tuesday.