**Summary of Unilever PLCs 2025 Full Year Results:**
Unilever PLC reported its 2025 full-year results, highlighting a strategic focus on simplification, disciplined execution, and portfolio transformation. Key financial and operational highlights include
**Underlying Sales Growth (USG)** 3.5% overall, with a stronger 4.2% in Q4, driven by 1.5% volume growth for the year and 2.1% in Q4.
**Turnover** €50.5 billion, down 3.8% due to adverse currency impacts (5.9%) and net disposals (1.2%).
**Power Brands** Accounted for 78% of turnover, with 4.3% USG and 2.2% volume growth.
**Profitability** Gross margin improved to 46.9% (up 20bps), supporting brand and marketing investment at 16.1%. Underlying operating margin expanded to 20.0% (up 60bps).
**Earnings** Underlying EPS increased 0.7%, while diluted EPS rose 6.2%.
**Productivity** Delivered €670 million in savings, ahead of the €650 million target.
**Cash Flow** Free cash flow (FCF) of €5.9 billion, down €0.4 billion due to Ice Cream demerger costs.
**Dividends and Buybacks** Quarterly dividend raised 3%, and a new €1.5 billion share buyback announced.
**Portfolio Transformation** Completed the Ice Cream demerger and closed or announced 10 transactions, including acquisitions of Dr. Squatch and Minimalist, and disposals of Conimex, The Vegetarian Butcher, and Kate Somerville.
**Strategic Highlights**
Focused on higher-growth categories like Beauty & Wellbeing and Personal Care.
Advanced a category-led operating model, with separate sales organizations in key markets.
Strengthened capabilities in premium innovation, digital commerce, and social-first demand generation.
**Outlook for 2026**
Expects USG within the 4% to 6% multi-year guidance range, with at least 2% volume growth.
Anticipates a modest improvement in underlying operating margin from 20.0% in 2025.
**Business Group Performance**
**Beauty & Wellbeing** 4.3% USG, led by double-digit growth in Wellbeing, Dove, and Vaseline.
**Personal Care** 4.7% USG, supported by premium innovations and market share gains.
**Home Care** 2.6% USG, with acceleration in Q4 due to emerging market improvements.
**Foods** 2.5% USG, driven by emerging markets and strong performance of Hellmanns.
**Geographical Performance**
**Developed Markets:** 3.6% USGled by North America (5.3% USG).
**Emerging Markets** 3.5% USG, with strong recovery in Indonesia and China in H2.
**Financial Metrics**
Underlying operating profit€10.1 billion, down 1.1% due to currency headwinds.
Net profit: €6.2 billionup 2.9%.
Net debt: €23.1 billiondown from €24.5 billion in 2024.
**Ice Cream Demerger**
Completed in December 2025, creating The Magnum Ice Cream Company N.V. (TMICC) as a standalone entity.
Unilever retained a 19.9% stake in TMICC, valued at €1.7 billion.
Total gain on demerger€3.4 billion.
**Capital Allocation**
Returned €6.0 billion to shareholders through dividends and buybacks in 2025.
New €1.5 billion share buyback program announced for 2026.
**Conclusion**
Unilevers 2025 results reflect a strategic shift towards higher-growth categories, operational efficiency, and portfolio simplification. Despite currency headwinds and market challenges, the company demonstrated resilience and positioned itself for sustained growth in 2026 and beyond.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Turnover (€ billion) | 52.5 | 50.5 | (3.8%) |
| Underlying Sales Growth (USG) | N/A | 3.5% | N/A |
| Underlying Operating Profit (UOP) (€ billion) | 10.2 | 10.1 | (1.1%) |
| Underlying Operating Margin (UOM) | 19.4% | 20.0% | 60bps |
| Underlying EPS (€) | 3.06 | 3.08 | 0.7% |
| Free Cash Flow (FCF) (€ billion) | 6.3 | 5.9 | (0.4) |
| Net Debt (€ billion) | 24.5 | 23.1 | (1.4) |
| Net Debt / Underlying EBITDA | N/A | 2.0x | N/A |