Unilever Reports Strong First Half Performance

Unilever Reports Strong First Half Performance

Today, we announced our results for the first half of 2025.

• Underlying sales growth (USG) of 3.4%, with volume growth of 1.5% and price of 1.9%
• Turnover of €30.1 billion, down -3.2%; with adverse currency -4.0% and net disposals -2.5%
• Strong gross margin of 45.7% fuelled increased brand & marketing investment up 40bps to 15.5%
• Underlying operating margin of 19.3%, down -30bps against the strong prior year comparator
• Underlying EPS decreased -2.1% to €1.59, diluted EPS decreased -3.7%
• Free cash flow €1.1 billion, reflecting lower operating profit, Ice Cream separation costs and higher working capital
• Productivity programme ahead of plan, delivering a cumulative c.€650 million savings by end 2025
• Quarterly dividend up 3% vs Q2 2024; €1.5 billion share buyback completed
• Ice Cream operational separation completed, on track for demerger in mid-November

Statement from Fernando Fernandez, CEO

“Our continued outperformance in developed markets and the positive impact of our decisive interventions in emerging markets, accelerated our growth in the second quarter to 3.8%, with positive volume growth across all business groups.

“This brought first half underlying sales growth to 3.4%, balanced across volume and price. A strong gross margin and productivity gains ahead of plan fuelled increased investment in our brands and premium innovations.

“Our first half performance positions us well for the full year. In the second half, we expect further acceleration in emerging markets, particularly in Asia, and sustained momentum in developed markets.

“We are on track to demerge Ice Cream by mid-November, with the operational separation now complete and competitive performance improving.

“Looking ahead, our priorities are clear: more Beauty & Wellbeing and Personal Care; disproportionate investment in the US and India; and, a sharper focus on premium segments and digital commerce. We are building a marketing and sales machine that drives desire at scale in our power brands and ensures execution excellence across all channels to deliver consistent volume growth and gross margin expansion.”

Outlook

For full year 2025, we expect underlying sales growth to be within our range of 3% to 5%, with second half growth ahead of the first half despite subdued market conditions. This is supported by our continued strength in developed markets and improving performance in emerging markets, notably in India, Indonesia and China.

We anticipate an improvement in underlying operating margin for the full year, with second half margins of at least 18.5%, a significant improvement versus the second half of 2024.

The macroeconomic and currency environment is uncertain and we will be agile in adjusting our plans as necessary.