Unilever and Danone Outperform Q3 Forecasts, Outpacing Nestlé in Volatile Market

Unilever, listed on the FTSE 100, reported a notable 4.5% sales increase and a 3.6% boost in volumes, marking its largest quarterly sales volume rise in nearly four years. However, its revenues declined by 2.8% to €15.2 billion, attributed to currency impacts and net disposals. Unilever’s food division saw a modest 1.5% growth, with volumes up by 0.4%, while its ice cream business recorded a significant 9.8% value increase, driven partly by a 6.7% surge in volume.

Despite these gains, Unilever maintained its full-year outlook, anticipating growth within the 3-5% range, with volumes—not price—being the primary driver. This comes over a year after CEO Hein Schumacher took charge, initiating a strategic overhaul that included the separation of Unilever's ice cream division into a standalone business.

Similarly, Danone, the owner of Activia and Evian, exceeded expectations with a 4.2% sales growth, surpassing analysts' predictions of 3.75%. Volume growth was 3.6%, outpacing the forecasted 2.9%. While all regions posted gains, China and North Asia led the charge with an 8% sales increase, whereas Europe’s growth lagged at 1.4%. Water sales drove much of Danone's success in Europe, growing by 4.3%.

Both FMCG giants attribute their success to a strong focus on innovation, operational efficiency, and market adaptation, positioning themselves as leaders in a volatile market where their competitor Nestlé is struggling.