Unilever boosts brand and marketing spend by €700m in first half

Unilever increased its brand and marketing investment by 180 basis points to 15.1% of turnover – an increase of nearly €700m (£589m) – during the first half of 2024.

“Our focus has been and remains on delivering high quality sales growth and expanding gross margin, thereby enabling a step-up in investment behind our brands,” Unilever CEO Hein Schumacher told investors on a call today (25 July).

Underlying sales at the group were up 4.1% in the first half, with volumes rising by 2.6%. In line with its existing strategy, this growth was led by Unilever’s portfolio of Power Brands, which account for 75% of group turnover. These brands saw underlying sales growth of 5.7%, with volumes up 4%. Overall, gross margin grew by 420 basis points to 45.7%, helped in part by lower materials costs.

“Focusing on these 30 brands is a core part of our plans and so we are encouraged by the progress here,” Schumacher added. “This allowed for nearly €700m in extra brand and marketing investment, which went behind an increasingly strong and focused innovation programme.”