Unilever plc (LSE:ULVR) delivered 3.5% underlying sales growth in 2025, supported by a 1.5% increase in volumes and solid performances from its core Power Brands. While reported turnover declined due to currency pressures and prior disposals, the group achieved improved profitability, with underlying operating margin rising to 20.0%. Earnings advanced, free cash flow remained strong, and the board increased the dividend alongside announcing a €1.5 billion share buyback programme.
A major strategic milestone during the year was the completion of the Ice Cream business demerger, marking a significant step in Unilever’s portfolio transformation. In total, the company executed ten portfolio transactions, sharpening its focus on higher-growth segments such as Beauty & Wellbeing and Personal Care, while exiting selected non-core food assets. These moves are intended to strengthen category leadership and enhance long-term growth prospects.
Operational adjustments also played a role in performance. The shift toward category-led sales structures and targeted resets in key markets including Indonesia and China contributed to improved execution and firmer emerging market momentum. Looking ahead to 2026, management expects low-end-of-range underlying sales growth and a modest further uplift in margins, even against a backdrop of softer global demand.
The group’s outlook is underpinned by strong financial delivery and decisive strategic actions, though technical indicators currently suggest weaker share price momentum and valuation metrics appear relatively elevated. Nonetheless, management believes the streamlined portfolio and sharpened category focus position Unilever for sustained competitive strength.
More about Unilever plc
Unilever plc is a global consumer goods leader operating across Beauty & Wellbeing, Personal Care, Home Care and Foods. The company holds leading positions in both developed and emerging markets and is increasingly prioritising premium, higher-growth categories and digital commerce. The United States and India remain central pillars of its long-term expansion strategy.
Leave a Reply