Unilever has reported a 3.0 % underlying sales growth (USG) for Q1 2025, powered by balanced 1.3 % volume and 1.7 % price gains. Turnover reached €14.8 billion, down 0.9 % as portfolio disposals (-2.7 %) and currency headwinds (-1.1 %) offset organic momentum. The FMCG giant reaffirmed its full-year guidance of 3 – 5 % USG and a “modest” improvement in underlying operating margin.
CEO Fernando Fernandez: “We began the year with a solid performance in premium-driven, innovation-led categories. Strong brand investment and disciplined execution give us confidence we will deliver our 2025 plan despite global macro uncertainty.”
Q1 2025 Highlights
| Metric | Result |
|---|---|
| Underlying sales growth | +3.0 % |
| Volume | +1.3 % |
| Price | +1.7 % |
| Turnover | €14.8 bn (-0.9 %) |
| Productivity savings | €0.8 bn to date; on track for €5.5 bn total by end-2025 |
| Share-buyback | €1.5 bn programme to complete by mid-2025 |
Group Performance
- Developed markets (42 % of turnover): USG +4.5 %, volume +3.3 %.
- Emerging markets (58 %): USG +2.0 %, volume -0.1 %. Latin America slowed; India and China expected to rebound H2.
Business-Unit Breakdown
- Beauty & Well-Being (22 % sales): USG +4.1 % on double-digit gains from Liquid IV and Nutrafol; core skincare up low-single digits.
- Personal Care (22 %): USG +5.1 %; Dove drove high-single-digit growth with body washes and whole-body deodorant.
- Home Care (21 %): USG +0.9 %; premium launches lifted Europe, offset by Brazil softness.
- Nutrition (23 %): USG +1.6 %; Hellmann’s avocado-oil mayo and flavour extensions offset lower volumes.
- Ice Cream (12 %): USG +4.0 %; Magnum Utopia and Yasso novelties boosted pre-summer sales.
Strategic Moves
Ice-Cream Spin-off
Unilever will carve out its ice-cream division as “The Magnum Ice Cream Company.” A Capital Markets Day is set for 9 September 2025 ahead of a Q4 spin, with dual listings in Amsterdam, London, and New York.
Productivity & Restructuring
The company has now implemented category-focused sales structures across 24 core markets, eliminating ~6,000 office roles and generating €0.8 bn in savings so far. Restructuring costs will average ~1.2 % of turnover over 2024-26.
Portfolio Tuning
Recent deals include:
- Acquisition of UK natural-deodorant brand Wild (April 2025)
- Purchase of India-based premium skincare line Minimalist (January 2025)
- Sale of The Vegetarian Butcher (March 2025) due to “limited scalability”
2025 Outlook Reaffirmed
- USG: 3 – 5 % on strengthened innovation funnel and actions in China & Indonesia.
- Underlying operating margin: “Slight” lift vs 2024’s 18.4 %, with a more even H1/H2 split.
- Capital returns: €1.5 bn buyback on track; quarterly DPS held at €0.4528 (up 6.1 % YoY).
“Scaling brand attractiveness and flawless in-market execution sit at the heart of our ‘Unilever Compass’ performance plan,” Fernandez added. “We are on course to deliver progress in 2025 and beyond.”
