Unilever has increased its brand and marketing investment by 180 basis points to 15.1% of turnover, amounting to nearly €700 million (£589 million) during the first half of 2024.
“Our focus has been and remains on delivering high-quality sales growth and expanding gross margin, thereby enabling a step-up in investment behind our brands,” Unilever CEO Hein Schumacher told investors on a call on July 25.
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The group’s underlying sales rose by 4.1% in the first half, with volumes increasing by 2.6%. This growth aligns with Unilever’s existing strategy, led by its portfolio of Power Brands, which account for 75% of the group’s turnover. These brands experienced underlying sales growth of 5.7%, with volumes up 4%. Overall, gross margin improved by 420 basis points to 45.7%, partially due to lower materials costs.
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“Focusing on these 30 brands is a core part of our plans, and we are encouraged by the progress here,” Schumacher added. “This allowed for nearly €700 million in extra brand and marketing investment, which supported an increasingly strong and focused innovation programme.”
