Unilever Stock Earnings Reports

Unilever delivered a solid 2025 in line with guidance despite a tough macro and significant currency headwinds. Underlying sales growth was 3.5% (volumes +1.5%, price +2%), with Power Brands (78% of revenue) outperforming the group. The company completed the Ice Cream demerger and rotated ~15% of the portfolio via 10 transactions, sharpening focus on Beauty & Wellbeing and Personal Care and prioritizing premium, digitally-native and e‑commerce-led brands (notable acquisitions: Minimalist, Wild, Dr. Squatch). Gross margin expanded for the third consecutive year and underlying operating margin rose 60 bps to 20%. Underlying EPS was EUR 3.08 (+0.7% reported; +9.5% constant currency). Free cash flow was EUR 5.9bn (100% conversion) and net debt fell to EUR 23.1bn; net debt/EBITDA ~2x. Productivity savings of ~EUR 670m have been delivered so far, with a target of EUR 800m by 2026. Brand & marketing spend increased to 16.1% of turnover (highest in a decade), with 100% of incremental investment behind Power Brands. Guidance for 2026: underlying sales growth at the low end of the multi‑year 4–6% range, volume growth of at least 2%, modest further margin improvement, and a new EUR 1.5bn share buyback; continued focus on volume-led growth, mix improvement and gross margin expansion. Key regional notes: North America remains a standout growth engine; emerging markets improved through the year (notably India, Indonesia, parts of Asia) though Latin America remains challenging but showed signs of recovery in Q4. Capital allocation priorities remain growth/productivity, portfolio reshaping, and attractive capital returns.