Unilever has seen its underlying operating profit increase by 17.1% in the first half of its financial year to €6.1bn (£5.8bn).

In terms of sales by the consumer brands firm, beauty and wellbeing was the best performer, jumping by 7.1% year-on-year, while personal care and home care product sales increased by 5.6% and 3.3% respectively.

Ice cream was the worst performer in this field, with sales increase by 0.6% during the period. However, Unilever is currently in the process of separating this division from the company.

In the first half of its current financial year, the firm also saw its earnings per share increase by 16.3% to €1.47 (£1.24) per share.

Chief executive officer at Unilever, Hein Schumacher, said: "We are focused on driving high-quality sales growth and gross margin expansion, led by our power brands. Over the first half, we made progress on those ambitions.

"Underlying sales grew 4.1%, driven by a third consecutive quarter of positive, improving volume growth, while pricing continued to moderate in line with our expectations. Strong gross margin progression fuelled increased investment behind our innovations, and resulted in a step-up of our profitability.

"We continue to embed the growth action plan, doing fewer things, better and with greater impact. The implementation of a comprehensive productivity programme and the separation of ice cream are key to delivering on that commitment and we are progressing at pace."

Looking ahead, Unilever said that it expects its sales growth to be within its multi-year range of 3-5%, with a majority of the growth being driven by volume, which increased by 4% in the first half of the current financial year.

It added that for the full year, it expects operating margin to reach at least 18% with increasing investment behind its brands.

Investment analyst at AJ Bell, Dan Coatsworth, added: "A big improvement on margins has put a rocket underneath Unilever’s shares, taking the stock to its highest level since November 2020. Key to its success has been shifting greater volumes of products, suggesting that consumer demand for big brands is bouncing back.

"It’s a healthy sign when volume growth exceeds pricing growth, as it implies solid underlying demand for the products, rather than simply slapping an extra amount on the unit price to boost revenue. Dig deeper and Unilever’s success is not universal. Emerging markets account for just under three fifths of sales and volume growth exceeded price growth. However, higher prices played a bigger role than volume growth in developed markets.

"For a company that has faced considerable criticism in recent years for taking its eye off the ball and losing focus, Unilever now seems to be getting its act together. There is a clear plan for how to make the business leaner and keener, and a sharper focus on the best bits of the business make perfect sense. The tricky part is execution and a big cost-cutting drive including the removal of thousands of jobs won’t be good for morale inside the business. Therefore, while the latest results offer some hope that its new plan is off to a good start, it won’t always be plain sailing from here."

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