Michael Cockerham/Unilever
Unilever makes Magnum and Cornetto ice lotions.
London
CNN
—
Can it ever be too sizzling for ice cream? In line with Unilever, sure.
The maker of Magnum and Cornetto mentioned Tuesday that the warmth wave these days searing Europe may just in truth put customers off the frozen dessert.
In relation to the elements, “there’s a candy spot for temperature,” Unilever’s leader monetary officer, Graeme Pitkethly, informed newshounds. “When it will get too sizzling, other people transfer clear of ice cream and purchase a chilly drink as a substitute,” he mentioned.
Unilever
(UL), which additionally owns Ben & Jerry’s, noticed a powerful pickup in its out-of-home gross sales in Europe, which come with the ones to eating places and catering corporations, after a chilly snap in April and Might gave strategy to hotter climate in June.
However temperatures have soared over the last few weeks, breaking native data in portions of Spain and Italy and contributing to raging wildfires in Greece. Well being officers have instructed citizens and vacationers visiting southern Europe to drink a lot of water and keep indoors.
Unilever, which sells tubs of Carte d’Or and Breyers, mentioned gross sales of in-home manufacturers of ice cream had been muted within the first six months of the yr as customers, squeezed by way of inflation, reduce on non-essential spending. The shopper items large instructions a 5th of world ice cream gross sales, in keeping with Euromonitor.
The corporate’s total ice cream gross sales grew 5.7% within the first part of the yr in worth phrases, when compared with the similar length in 2022. Gross sales enlargement was once pushed by way of a pointy building up in costs whilst volumes dipped.
Worth rises throughout Unilever’s merchandise helped push up its gross sales by way of 9.1% within the first part, despite the fact that volumes fell marginally. The corporate, which additionally makes Dove cleaning soap and Domestos bleach, mentioned value will increase would “average” all the way through the yr as inflation in its enter prices eased.
Chatting with analysts, CEO Hein Schumacher cautioned, then again, that volatility in agricultural commodity markets — together with the have an effect on of the Ukraine battle on wheat costs and the results of drought in southern Europe — may just nonetheless power meals costs upper.
Stocks within the corporate climbed 5%, after it raised its forecast for income enlargement for the yr to greater than 5%.
Schumacher — who joined Unilever on July 1 from Dutch dairy corporate Royal FrieslandCampina — informed newshounds that there was once a chance to “step up efficiency” and “understand Unilever’s possible.” He’s going to set out his plans for the industry when the corporate studies third-quarter income in October.
