A quick look at the brands, categories and innovations driving our underlying sales growth for 2023.
On 8 February, we announced our results for the full year 2023, which show an improving financial performance, with the return to volume growth and margins rebuilding.
Underlying sales growth was up 7.0%, volume growth up 0.2% and underlying operating margin up 60bps to 16.7%. Underlying sales growth of our 30 Power Brands was up 8.6%.
Here’s a look at the results highlights from each business group, and how innovation from our brands is driving performance.
Beauty & Wellbeing delivered a strong full-year performance, with underlying sales up 8.3%, balanced between price at 3.8% and volume at 4.4%. Volume growth accelerated through the year to 6.3% in the fourth quarter, with good volumes in Hair Care and very strong volumes in Health & Wellbeing.
The full-year performance reflects continued strong growth in Prestige Beauty and Health & Wellbeing, which now account for a quarter of Beauty & Wellbeing’s turnover, as well as successful relaunches of some of our core Hair Care and Skin Care brands. The relaunches were powered by our science and technology capabilities and were supported by increased investment across our key markets to elevate their superiority credentials.
Hair Care grew mid-single digit through a combination of price and volume growth, with strong growth in Latin America and Turkey. Sunsilk delivered double-digit growth for the year following a successful relaunch of the brand. Clear delivered mid-single digit growth driven by breakthrough innovation – our first clinically proven anti-dandruff formula powered by niacinamide concentrate to repair and strengthen the scalp’s skin barrier. Following the successful relaunch in China last year, the mix has now been expanded to Thailand, Turkey and Brazil.
Core Skin Care grew low-single digit, driven by price. Vaseline delivered double-digit growth, reaching €1 billion of turnover in 2023. Following the launch of our successful Gluta-Hya range in South-East Asia two years ago, we further expanded the platform with the launch of serums and a Pro-Age range, tapping into a larger consumer pool by extending the patented technology to more products and new markets such as India. In North Asia, AHC declined double-digit as we reset the cross-border trade channel.
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