Consumer goods giant Unilever has announced a significant increase in its brand and marketing expenditure for 2024, raising investment by €900 million to represent 15.5 per cent of the year’s total turnover.
The company described the boost as its most substantial marketing investment in over a decade, attributing the move to an improvement in gross margins. Unilever’s turnover rose 1.9 per cent year-on-year to €60.8 billion, though operating profit declined 3.7 per cent to €9.4 billion due to non-underlying charges, including losses on asset disposals and heightened restructuring expenses linked to its productivity programme.
Sales growth for the year stood at 4.2 per cent, with volume growth reaching 2.9 per cent and price growth at 1.3 per cent. The increased marketing spend encompassed major sponsorship deals for international football tournaments such as UEFA Euro 2024 and the CONMEBOL Copa America USA 2024.
Looking ahead, Unilever expects underlying sales growth in 2025 to align with its long-term range of 3 to 5 per cent. Market conditions are anticipated to remain subdued in the first half of the year but are expected to improve later as price increases take effect to reflect rising commodity costs.
The company foresees a more balanced contribution from both volume and price growth in 2025. It projects a modest rise in its underlying operating margin compared with 18.4 per cent in 2024. This improvement is expected to materialise in the second half of the year, following a particularly strong first half of 2024 when the operating margin reached 19.6 per cent, bolstered by carry-over pricing and falling input costs.
Unilever’s chief executive officer, Hein Schumacher, noted that 2024 was a year marked by transformation as the company worked towards becoming a higher-performing business. “Market growth slowed throughout the year, and we expect a soft start in 2025. However, the launch of our refreshed GAP2030 strategy, increased investment in brands, and strong innovation pipelines position us well for future growth,” Schumacher said.
