Unilever increases marketing spend by almost $1 billion

The FMCG giant's turnover rose to over $65 billion USD in 2024.

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Unilever: 'power brands' contribute to three-quarters of turnover

Unilever's marketing spend went up by $972 million (£750m) to its "highest level in over a decade" last year, according to the company's 2024 full year results.

Turnover for the year increased by 1.9% year on year to $65.66 billion, while underlying operating profit rose by 12.6% to $11.99 billion (£9.34 billion).

Earnings before interest, taxes, depreciation and amortisation fell slightly from $12.20 billion (£ 9.5 billion) in 2023 to $11.90 billion (£9.4 billion).

Unilever’s 30 “power brands”, which include Ben & Jerry’s, Cornetto, Dove, Hellmann's and Magnum, contributed to more than three-quarters of its turnover.

The company said improved gross profit margin “fuelled further increases in brand and marketing investment".

It said it “remains on track” to separate its ice-cream division by the end of this year, and to move the headquarters of the division from London to Amsterdam.

Hein Schumacher, chief executive of Unilever, said the results “reflect a year of significant activity as we focused on transforming Unilever into a consistently higher-performing business. The steps we have taken in 2024, which include further reinvestment in our brands and strong innovation pipelines, leave us better positioned to deliver on our ambitions in the years ahead."

The company consolidated creative accounts for its beauty brands with WPP in August 2024. They were previously held by WPP, Interpublic Group, Omnicom and Oliver. The changes meant WPP took on creative responsibilities for Clear, Dove, TreSemmé, Sunsilk, Simple, Nexxus, Shea Moisture, Clear and Pond’s globally, while continuing its previous work on Vaseline.

It also reappointed WPP’s Mindshare to its media account in the UK and US in September last year, having launched the review of its media planning and buying account nine months before.

Source:

Campaign UK