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Unilever sales slow despite virus cleaning frenzy

Agence France-Presse

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Unilever says demand for household cleaning products increased, but sales of personal grooming products sagged

British-Dutch consumer giant Unilever said on Thursday, July 23, that worried consumers snapped up cleaning products due to the coronavirus pandemic but that overall sales slid.

During the 1st half of the year, sales came in at 25.7 billion euros ($29.8 billion), a drop of 1.6% from the same period last year, with currency fluctuations also negatively affecting the results.

In the 2nd quarter, when lockdowns were in place in much of Europe and North America, overall sales slid by 2.9% to 13.3 billion euros.

Unilever said the coronavirus and lockdowns provoked changes in consumer behavior, with people spending more time at home and being more concerned about hygiene.

“We saw increased consumer demand for household cleaning products, such as Cif surface cleaners, and our home and hygiene brands delivered high-teens underlying sales growth,” the company said in a statement.

Nevertheless sales of home care products overall fell by 3.7% during the quarter to 2.6 billion euros.

And with many people no longer going into the office or out to socialize, sales of personal grooming products sagged by 3.6% to 5.3 billion euros.

“Lockdowns in our markets and reduced personal care occasions amidst restricted living, led to lower demand for skin care, deodorants, and hair care, which each saw volume and price decline,” said Unilever.

The division’s largest brand, Dove soap, saw mid-single digit growth, however.

Sales of food products, which includes brands such as Magnum ice cream, Knorr soups, and Lipton tea, slid 1.8% in the 2nd quarter to 5.4 billion.

It noted a 40% drop in food service sales at hotels, restaurants, and cafes, which was partially offset by a rise in retail food sales.

The results were better than expected by many analysts, and shares in the firm jumped by more than 8% in morning trading, outpacing the 1.2% gain for Amsterdam’s main stock index. – Rappler.com

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