Unilever has seen its underlying sales growth (USG) increase by 4.5% in the third quarter of its current financial year, while also witnessing volume growth of 3.6%.

The British fast-moving consumer goods company said that it recorded €15.2bn (£12.7bn) in turnover in Q3, taking its turnover for the year so far to €46.4bn (£38.7bn), an increase of 1.3%.

The firm, which owns brands including Dove, Ben & Jerry’s and Hellman’s, said its beauty and wellbeing division has recorded the highest USG in the year so far, increasing by 7%, while its ice cream division was the best USG performer in Q3, increasing by 9.8%.

This comes after Unilever announced in March that it was to separate from its ice cream division, launching a "major productivity programme" to strengthen the company and "substantially improve" its efficiency and effectiveness.

It added that the separation activity is on track to complete by the end of 2025.

Chief executive officer at Unilever, Hein Schumacher, stated that this is the "fourth consecutive quarter of positive improved volume growth", with each of its business groups "driving higher volumes" year-on-year.

He added: "Underlying sales grew 4.5%, led by our Power Brands, with particularly strong performances from Dove, Liquid I.V., Comfort and Magnum. Price growth continued to moderate in line with our expectations.

"We are still in the early stages of transforming our performance as we execute the growth action plan at pace - focused on doing fewer things, better and with greater impact. We are starting to see the positive impact from scaling fewer, bigger innovations across our markets supported by increased brand investment. We are taking decisive actions, where we see operational or market challenges to ensure we are well positioned for consistent and improved performance."

Looking ahead, Unilever said its guidance for the full financial year was "unchanged", expecting USG between its multi-year range of 3-5%, with the majority of growth being driven by volume.

The firm said that its underlying operating margin of at least 18%, with "increasing investment" behind its brand.

Investment director at AJ Bell, Russ Mould, said: "It’s an easy headline to suggest that since Unilever dialled down its commitments to going green and increasing diversity its fortunes have turned but, coincidence or not, things are definitely improving for the consumer goods giant.

"A little over a year into the job and CEO Hein Schumacher has made genuine progress with the business. This is reflected in today’s slightly better-than-expected third-quarter sales."

He added that the latest performance was built on "improved product innovation but also slowing down price increases".

Mould concluded: "Unilever faces a tricky balancing act between protecting its profitability and not alienating shoppers. This is a particular risk in developed markets where customers have the option of trading down to generic alternatives but less of an issue in emerging economies where these kinds of options are not readily available."

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