Unilever ice cream sales melt away as tourists stay home
ICE cream sales at consumer goods giant Unilever took a hit as tourists stayed away from the hotter climates of Italy and Spain during the summer.
However, the company behind Dove soap, Lynx, Ben & Jerry’s ice cream and Pot Noodle said it continues to benefit from the Covid19 crisis – with sales of soap and hand sanitisers remaining strong.
The firm said social distancing, new lockdown measures and home working mean that many customers opted to go without deodorant and skin care routines.
While tourists stayed away from hotspots and ice cream, they bought extra food for the home and Unilever reported strong sales via supermarkets and grocers.
Total sales in the three months to the end of September were £ 11.6bn, down 2.4 per cent compared with the same quarter a year ago – although this fall was mainly due to the euro weakening.
On Unilever’s preferred measure – underlying sales growth – sales rose 4.4 per cent.
Home care sales, which includes Domestos bleach and fabric softener Comfort, grew the fastest – up 6.7 per cent to £ 2.35bn.
The beauty and personal care division grew 3.8 per cent, benefitting from strong sales of soap and sanitiser via its Dove products.
The company said demand for hand hygiene remained high, but cooled slightly compared with the height of the pandemic in the second quarter.
Unilever said people are washing their hair more often, even if they are not styling it as much.
The food and refreshments division saw high demand for Hellmann’s mayonnaise, Ben & Jerry’s and Magnum ice creams.
Sales cooled for ice creams out of the home – Unilever owns Walls ice creams – especially in Italy and Spain where a lack of tourists left ice creams in the hot sun a distant memory.
The food service business fell by 20 per cent whilst lockdowns and restrictions reduce demand for eating out.
Unilever’s chief executive, Alan Jope, said: “The environment we are operating in will remain unpredictable in the near term, so we will continue to maintain the speed and agility of our response .”
The firm warned that a planned unification under a single UK entity is still threatened by a Dutch Bill that would impose an exit tax. The group’s unification has received the backing of UK shareholders.