LONDON – Ongoing inflation boosted first-half sales growth at Unilever, where turnover rose 2.7 percent year-on-year to 30.4 billion euros.

The parent of brands including Dove, Dermalogica and Hellmann’s said that underlying sales for the six-month period were up 9.1 percent, due chiefly to cost growth which is about to fall within the second half of the yr as cost inflation comes down.

Sales in Unilever’s Beauty and Wellbeing division rose 8.6 percent to six.2 billion euros within the six months to June 30, while Personal Care sales were up 7.3 percent to six.9 billion euros compared with the corresponding period last yr.

Unilever’s net profit for the half yr rose 20.7 percent to three.9 billion euros, bolstered partly by disposals.

Analysts said the numbers were solid, and the markets agreed. The share price was up nearly 5 percent in late morning trading at 42.06 kilos on the London Stock Exchange.

In his debut quarterly results statement, Unilever’s latest chief executive officer Hein Schumacher said the corporate’s first-half performance highlighted the qualities that first attracted him to the business, “an unmatched global footprint, a portfolio of great brands and a team of talented people.”

Schumacher said his early immersion within the business has confirmed his belief in Unilever’s “strong fundamentals. The duty ahead is to leverage these core strengths – supported by our simplified operating model – to drive improved performance and competitiveness.

“That is our absolute priority and it can mean bringing greater focus and sharper execution, with science-backed innovations and investment behind our brands.”

Schumacher said he would offer more detail in October when Unilever reports its third quarter numbers.  

Unilever described the primary half macro environment as “volatile and high-cost,” and said it expected underlying sales growth for the total yr to be above 5 percent, ahead of its multi-year range. Underlying price growth will proceed to moderate through the yr as cost inflation falls.

Unilever said its expectation for net material inflation for 2023 is around 2 billion euros, of which 0.4 billion euros is anticipated within the second half.

The corporate noted that the prestige health and beauty and wellbeing brands delivered further volume-led, double-digit growth in the primary six months.

In prestige, Paula’s Selection, Dermalogica and Hourglass delivered “strong” growth supported by latest, research-backed product launches similar to Dermalogica’s phyto nature oxygen cream.

In health and wellbeing, Unilever said that Liquid I.V. continued to perform well. The corporate said it launched three sugar-free variants of its hydration technology “without compromise on flavor or function.”