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Unilever, Britain's biggest corporate barometer of consumer confidence, today gave a clear indication that the economy is on the turn as its famous brands returned to growth in the last quarter.
The giant behind brands ranging from Ben & Jerry's ice cream to Dove soap, saw its sales volumes fall in many regions of the world, including western Europe, during the first three months of the year, but the witnessed them all bounce back in April, May and June. Total underlying sales growth came in at 4.1% for the quarter, in stark contrast to arch rival Procter & Gamble of the US, which yesterday reported a 4% fall in volumes during that time.
The bounce back was partly due to increased marketing spend and price cuts made possible by falling costs of ingredients on the world commodities markets. But the wider picture added to the recent run of evidence that consumer confidence is returning.
In the UK, PG Tips tea was highlighted as a big winner during the period, with its market share by volume leaping 13% against a year ago thanks to the “Al & Monkey” advertising campaign, while strong growth in ice cream sales was led by Magnum, where sales are currently up more than 9% on the year.
Chief executive Paul Polman said of the western European performance: “We returned to positive volume growth in the second quarter, with an improving trend across all key countries.”
Operating profits in the second quarter were, however, still 4% down over the same months last year at €1.32 billion (£1.11 billion).
Shares in the company jumped 6% on the figures, up 85p at 1629p. They fell to 1226p during the first quarter.
