Early signs show the new strategy is working Unilever has reported Q1 USG of +10.5% (company-compiled consensus +7.2%), with three of the five divisions in double digit growth. Volumes contributed -0.2% (consensus -3.2%) and price contributed +10.7% (consensus +10.7%). The large “billion euro” brands grew 12.1%. FY23 outlook is raised to “at least at the upper end” of the 3-5% medium-term guidance; previously this was “at least in the upper end” of the range. So overall this appears to be a c. 1% increase to FY23 top-line guidance. H1 underlying operating margin is now expected to be “at least 16%” in H1 (consensus 16.0%), having previously been expected at around 16%. However, FY margin outlook is unchanged. Beauty & Wellbeing USG is +9.3%. Volumes were an impressive (to us) +2.6%, as Prestige and Health & Wellbeing held up despite pressure on consumers. Personal Care USG is +12.7%. Deodorants performed well. Home Care USG is +10.2%. Lower volumes hurt Home & Hygiene and Air Wellness. Nutrition USG is +11.9%. Volumes were -1.3%. Ice Cream USG is +6.0%. Volume softness in the at-home channel more than offset strong performance in the out-of-home channel. This is a solid start to the year for Unilever and likely to deliver minor consensus upgrades. Management hosts an analyst call at 8:00am UK time.