Full Year 2025 Unilever PLC Earnings Call Transcript
Key Points
- Unilever PLC (UL) delivered a solid performance in 2025, achieving a 3.5% underlying sales growth with a focus on volume-led growth.
- The company successfully executed a portfolio transformation, including the demerger of its ice cream business and strategic acquisitions like Minimalist, Dr. Squatch, and Wild.
- Unilever's power brands, representing over 78% of turnover, outperformed with a 4.3% underlying sales growth, driven by strong volume growth.
- The company achieved a record underlying operating margin in its Foods division, reaching 22.6%, supported by strategic portfolio pruning and disciplined pricing.
- Unilever's emerging markets showed improved performance, with significant growth in regions like Asia Pacific Africa and a recovery in Latin America.
- Unilever faced significant currency headwinds, with FX reducing turnover by 5.9%, impacting overall financial performance.
- The company experienced challenges in its Foods division in Europe, particularly in the Netherlands and Germany, where market conditions were softer.
- Despite strong performance in some areas, Unilever's non-power brands, which make up 22% of revenue, saw a volume decline of 1% for the year.
- The company anticipates continued inflationary pressures in select commodities, such as palm kernel oil and surfactants, which could impact margins.
- Unilever's well-being segment in North America experienced a slowdown in Q4, with volume growth dropping to 5% from double digits earlier in the year.
No thank you, yeah.
Hello and welcome to Unilever's full year results announcement.
Thank you for joining us. In a moment, Sunni Pathak, our Chief Financial Officer, will take you through a detailed breakdown of Unilever results for 2025. But before that, I would like to share with you a few reflections on our performance last year. Let me start by saying that we have delivered this year, fully in line with our commitments, despite challenging conditions.
When I took over as CEO, I made clear that one of my biggest priorities was to ensure that in Unilever we could both perform and transform. 2025 has demonstrated our ability to do both. We deliver a good performance, delivering competitive volume growth, positive mix, and gross margin expansion with sequential improvement throughout the year. We sharpen the portfolio. The axelererer of ice cream combined with 10 deals including acquisitions like Minimalist Wi Dr. Kosh and the disposal of several non-strategic brands means that we have rotated 15%
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