Unilever reports 3.4% sales growth in H1 FY 2025
The performance was driven by a balanced increase across both volume and price components.
UK – Unilever reported a 3.4% underlying sales growth in the first half (H1) of fiscal year 2025.
The company generated a turnover of €30.1 billion(USD 34.31 billion) during this period, which, however, reflected a 3.2% decline compared to the prior year.
Unilever reported a 4.8% drop in underlying operating profit to €5.8 billion(USD 6.61 billion), with margins slightly down to 19.3%, while gross margin held steady at 45.7% amid strong productivity and savings efforts.
Operating profit declined 10.6% to €5.3 billion(USD 6.22 billion) due to increased acquisition and disposal costs.
The sales growth was supported by strong performance in developed markets (44% of turnover), delivering 4.3% growth, fueled by gains in North America and Europe.
Fernando Fernandez, CEO, stated, “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.”
Beauty & Wellbeing sales grew 3.7% in H1, led by strong Wellbeing performance, while operating profit fell 3.7% due to higher marketing investments.
This was driven by strong performance in Wellbeing brands like Liquid I.V. and Nutrafol, though flat results in Hair Care and subdued demand in Prestige Beauty partly offset growth.
Unilever’s Personal Care sales rose 4.8% in H1, led by Dove and Oral Care growth, while operating profit declined 9.8% due to disposals and increased brand investment.
Meanwhile, the Home Care division grew sales by 1.3% in H1, driven by substantial gains in Home & Hygiene and Fabric Enhancers, while operating profit fell 11.2% due to lower gross margins and tough year-on-year comparisons.
Emerging markets, which account for 56% of turnover, grew underlying sales by 2.8%, with notable improvements expected in India, Indonesia, and China in the second half of 2025 as market conditions sharpen and growth accelerates.
Despite the sales growth, Unilever faced some profit pressures, with underlying operating margin slightly down 30 basis points year-on-year to 19.3%, partly due to currency headwinds and costs related to the ongoing strategic demerger of its Ice Cream division, which is set for mid-November 2025.
Looking ahead, Unilever reconfirmed its full-year 2025 outlook with expected underlying sales growth within a 3% to 5% range, anticipating stronger growth in the second half supported by emerging markets and sustained momentum in developed markets.
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