Unilever reports 3.5% sales growth in FY25 amid portfolio reshaping and slower market conditions
The performance was driven by a potent innovation pipeline, advances in key emerging markets, and the successful separation of its Ice Cream business.
UK – Unilever has reported a strong 3.5% underlying sales growth for the financial year 2025, defying broader market slowdowns through simplified operations, sharper strategic focus, and rigorous execution.
Fernando Fernandez, Unilever CEO, stated, “In 2025 we became a simpler, sharper, and faster Unilever, delivering our commitment to volume growth, positive mix and strong gross margin.”
“We have set clear priorities for growth, building a brand portfolio for the future, with more Beauty, Wellbeing and Personal Care, prioritising premium segments and digital commerce, and anchoring our growth in the US and India.”
This result incorporated 1.5% volume growth and 2.0% price growth, with momentum building to 4.2% in the fourth quarter.
The company’s total turnover stood at €50.5 billion (USD 54.54 billion), reflecting a 3.8% decline, primarily due to currency fluctuations and net disposals.
The operating profit climbed to €10.1 billion (USD 10.91 billion), lifting the margin to 20.0%, a 60 basis point improvement from 19.4%, strengthened by gross margin expansion to 46.9%, sustained brand investment at 16.1% of sales, and overhead efficiencies from a productivity drive that saved €670 million (USD 724 million), surpassing goals.
Power Brands drove 4.3% growth, with a 2.2% volume uplift, led by Personal Care at 4.7% and Beauty & Wellbeing at 4.3%.
Home Care advanced 2.6%, propelled by expansions like Wonder Wash and premium Cif Infinite Clean, accelerating to 4.7% in Q4, while Foods grew two thanks to emerging market strength and Hellmann’s in developed regions despite some setbacks.
Regionally, developed markets delivered 3.6% growth, with North America leading at 5.3%, though Q4 eased to 1.7%.
Emerging markets rose 3.5%, hitting 5.8% in Q4, driven by turnarounds in India, Indonesia, and China and a recovery in Latin America.
Strategically, Unilever honed its portfolio around high-potential Beauty & Wellbeing and Personal Care via acquisitions such as Dr. Squatch in North America and Minimalist in India.
Alongside Unilever’s divestiture of Foods units such as Conimex and The Vegetarian Butcher, and its premium play Kate Somerville, the Ice Cream demerger concluded on December 6, 2025, as The Magnum Ice Cream Company, with Unilever retaining a 19.9% stake for a phased exit.
A category-led model with specialized sales teams enabled swifter decisions in priority markets, complemented by resets in Indonesia and China through streamlined routes-to-market and portfolio adjustments yielding positive shifts.
Meanwhile, shareholder value hit €6.0 billion (USD 6.48 billion), including a new €1.5 billion(USD 1.62 billion) share buyback slated for Q2 2026 and a Q4 dividend of €0.4664 per share, up 3.0%.
Looking to 2026, Unilever projects 4%-6% underlying sales growth and marginal operating profit gains from 20.0%, prioritizing brand desirability, AI integration, and a high-accountability culture.
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