Unilever (ULVR) Barclays 17th Annual Global Consumer Staples Conference summary

Growth Action Plan and strategic focus

• Emphasis on making bigger, more impactful bets, focusing on 30 Power Brands and driving innovation with fewer, larger projects.

• Achieved volume-led growth, strong gross margin expansion, and improved competitiveness, though further progress is needed.

• Unmissable Brand Superiority framework implemented in 70% of the business, using 21 metrics across six pillars to drive brand health and market share.

• Strong correlation found between brand superiority and market share growth; packaging improvements and premiumization are early wins.

• Dove, the largest brand, grew 10% in H1, with expansion into new categories and markets, including dermacosmetics in Brazil.

Innovation, productivity, and margin improvement

• Shift to fewer, larger innovation projects, aiming to double average innovation size and create 100 million EUR platforms.

• Gross margin improved by 430 basis points in H1, with structural gains pulled forward to 2024.

• Productivity programs target both supply chain and overhead, with EUR 800 million in cost savings and significant job reductions underway.

• Ice cream business separation progressing, with a focus on standalone value creation and operational improvements.

Regional performance and market dynamics

• U.S. business remains strong, with premiumization in deodorants and body wash, though prestige beauty growth is slowing.

• India shows robust volume growth and premiumization, with strong positions in key categories and bullish medium-term outlook.

• China faces macroeconomic headwinds but maintains strong market positions and share gains in core categories.

• Indonesia undergoing a full transformation, with leadership and route-to-market reset to address persistent challenges.

• Europe sees sequential improvement, with scalable innovation and premiumization driving better execution.