2025 First Half Results
First half performance supports full year confidence
| Underlying performance | GAAP measures | ||||
| (unaudited) | 2025 | vs 2024 | 2025 | vs 2024 | |
| First Half | |||||
| Underlying sales growth (USG) | 3.4% | Turnover | €30.1bn | (3.2)% | |
| Beauty & Wellbeing | 3.7% | Beauty & Wellbeing | €6.5bn | (0.8)% | |
| Personal Care | 4.8% | Personal Care | €6.5bn | (5.9)% | |
| Home Care | 1.3% | Home Care | €5.9bn | (6.7)% | |
| Foods | 2.2% | Foods | €6.6bn | (1.8)% | |
| Ice Cream | 5.9% | Ice Cream | €4.6bn | 0.2% | |
| Underlying operating profit | €5.8bn | (4.8)% | Operating profit | €5.3bn | (10.6)% |
| Underlying operating margin | 19.3% | (30)bps | Operating margin | 17.6% | (150)bps |
| Underlying earnings per share | €1.59 | (2.1)% | Diluted earnings per share | €1.42 | (3.7)% |
| Free cash flow | €1.1bn | €(1.1)bn | Net profit | €3.8bn | (5.1)% |
| Second Quarter | |||||
| USG | 3.8% | Turnover | €15.4bn | (4.6)% | |
| Quarterly dividend payable in September 2025 | €0.4528 per share | ||||
First half highlights
- Underlying sales growth (USG) of 3.4%, with volume growth of 1.5% and price of 1.9%
- Turnover of €30.1 billion, down (3.2)%; with adverse currency (4.0)% and net disposals (2.5)%
- Strong gross margin of 45.7% fuelled increased brand & marketing investment up 40bps to 15.5%
- Underlying operating margin of 19.3%, down (30)bps against the strong prior year comparator
- Underlying EPS decreased (2.1)% to €1.59, diluted EPS decreased (3.7)%
- Free cash flow €1.1 billion, reflecting lower operating profit, Ice Cream separation costs and higher working capital
- Productivity programme ahead of plan, delivering a cumulative c.€650 million savings by end 2025
- Quarterly dividend up 3% vs Q2 2024; €1.5 billion share buyback completed
- Ice Cream operational separation completed, on track for demerger in mid-November
Chief Executive Officer statement
“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.
This brought first half underlying sales growth to 3.4%, balanced across volume and price. A strong gross margin and productivity gains ahead of plan fuelled increased investment in our brands and premium innovations.
Our first half performance positions us well for the full year. In the second half, we expect further acceleration in emerging markets, particularly in Asia, and sustained momentum in developed markets.
We are on track to demerge Ice Cream by mid-November, with the operational separation now complete and competitive performance improving.
Looking ahead, our priorities are clear: more Beauty & Wellbeing and Personal Care; disproportionate investment in the US and India; and, a sharper focus on premium segments and digital commerce. We are building a marketing and sales machine that drives desire at scale in our power brands and ensures execution excellence across all channels to deliver consistent volume growth and gross margin expansion.”
Fernando Fernandez
Outlook
For full year 2025, we expect underlying sales growth to be within our range of 3% to 5%, with second half growth ahead of the first half despite subdued market conditions. This is supported by our continued strength in developed markets and improving performance in emerging markets, notably in India, Indonesia and China.
We anticipate an improvement in underlying operating margin for the full year, with second half margins of at least 18.5%, a significant improvement versus the second half of 2024.
The macroeconomic and currency environment is uncertain and we will be agile in adjusting our plans as necessary.
First Half Review: Unilever Group
Growth
| (unaudited) | Turnover | USG | UVG | UPG | A&D | Currency | Turnover change |
| First Half | €30.1bn | 3.4% | 1.5% | 1.9% | (2.5)% | (4.0)% | (3.2)% |
| Second Quarter | €15.4bn | 3.8% | 1.8% | 2.0% | (2.4)% | (5.8)% | (4.6)% |
Underlying sales growth in the first half was 3.4%, with 1.5% from volume and 1.9% from price. Growth improved sequentially during the period to 3.8% in the second quarter, with volume of 1.8% and price of 2.0%. Power Brands contributed over 75% of turnover, growing 3.8% in the first half, with 1.6% from volume and 2.1% from price.
Beauty & Wellbeing grew underlying sales 3.7%, with 1.7% from volume and 2.0% from price, led by the continued strong performance of our Wellbeing business, which more than offset subdued growth in beauty. Personal Care grew 4.8%, with 1.4% from volume and 3.3% from price, with Dove growing high-single digit. Home Care underlying sales increased 1.3%, with 1.1% from volume and 0.2% from price, led by strong momentum in Europe which was partially offset by a decline in Latin America. Underlying sales growth in Foods was 2.2%, with 0.3% from volume and 1.9% from price, with improved growth in the second quarter. Ice Cream grew 5.9%, with 3.8% from volume and 2.0% from price, as we continue to enhance the fundamentals of the business, with improved execution and impactful innovations.
Developed markets (44% of group turnover) continued to perform well, with underlying sales growth of 4.3%, with 3.4% from volume and 0.9% from price. The second quarter was the fourth consecutive quarter of USG above 4% in developed markets. Volume growth was broad-based, with a strong performance in North America driven by Personal Care and Wellbeing, and volume growth in Europe led by Home Care.
Emerging markets (56% of group turnover) grew underlying sales 2.8%, with 0.2% from volume and 2.6% from price. India underlying sales grew 4% on a consolidated basis1, with underlying sales growth of 5% in the second quarter as market conditions gradually improved while we continued to gain market share. China declined low-single digit and Indonesia declined (4.8)% in the first half. However, we saw sequential improvement in the second quarter and we expect both countries to accelerate further in the second half. Latin America grew 0.5% with an acceleration of currency related price increases impacting volumes. Argentina growth was offset by Brazil and Mexico, as economic conditions continued to deteriorate in the first half.
Turnover was €30.1 billion, down (3.2)% versus the prior year, including (4.0)% from currency and (2.5)% from disposals net of acquisitions. The currency impact during the first half was primarily driven by Latin American currencies and the Turkish Lira depreciating against the Euro. In the second quarter, the depreciation of the US dollar against the Euro led to elevated currency impact versus the first quarter.
1 Previously reported on a standalone basis, excluding subsidiaries.
Profitability
| (unaudited) | UOP | UOP growth | UOM% | Change in UOM | OP | OP growth | OM% | Change in OM |
| First Half | €5.8bn | (4.8)% | 19.3% | (30)bps | €5.3bn | (10.6)% | 17.6% | (150)bps |
Underlying operating profit was €5.8 billion, a reduction of (4.8)% versus the prior year. Underlying operating margin of 19.3% was (30)bps against the strong prior year comparator.
We delivered a gross margin of 45.7%, which was flat compared to a strong performance in the first half of 2024 and sequentially up versus where we closed 2024. This reflects continued efforts to drive structural gross margin improvements and benefitted from higher than expected net productivity and procurement savings in the first half. Brand and marketing investment was up 40bps to 15.5% of turnover, as we continue to invest competitively behind our brands and innovations. Overheads improved by 10bps, as productivity and tighter cost control more than offset inflation and costs associated with setting up and running Ice Cream as a standalone business.
Operating profit was €5.3 billion, down (10.6)% versus 2024, reflecting higher acquisition and disposal costs and lower profit on disposals.
Ice Cream demerger
Ice Cream began operating on a standalone basis on 1st July. We are on track to complete the demerger in mid-November 2025. This will transform Unilever into a more focused organisation and create a world-leading Ice Cream business, The Magnum Ice Cream Company.
The Magnum Ice Cream Company (TMICC) will be led by Peter ter Kulve as CEO and Abhijit Bhattacharya as CFO. Jean-François van Boxmeer, TMICC’s Chair Designate, is in the process of appointing Non-executive Directors of the Board of TMICC, to be announced during Q3.
TMICC will hold a Capital Markets Day in London on 9th September where it will set out its business strategy and investment case. In association with the demerger, Unilever will publish a Shareholder Circular in October which will set out formal information on the demerger. Prospectuses will be published around one week before the demerger and listing date, which we expect in mid-November. The Ice Cream Business Group will be reported on by Unilever as a discontinued operation from the fourth quarter.
Upon demerger, Unilever will retain a <20% stake in TMICC, subject to regulatory approvals, for a period of up to five years. Over time, the retained stake will be sold down in an orderly and considered manner to pay separation costs and maintain capital flexibility through a reduction in net debt. The retained stake demonstrates our support and belief in TMICC.
Subject to shareholder approval, Unilever intends to consolidate its share capital following completion of the demerger. This share consolidation, which will reduce the total number of shares in issue, is designed to maintain comparability between Unilever’s share price, earnings per share and dividends per share before and after the demerger.
Productivity programme
Our productivity programme, launched in 2024 to simplify the business and further evolve our category-focused business model, remains ahead of plan in its delivery of €800 million of savings. We expect to realise around €650 million of savings by the end of 2025. The remaining €150 million of savings will be delivered in 2026.
Capital allocation
We continue to undertake targeted acquisitions to enhance focus and growth opportunities in selected areas.
In January, Hindustan Unilever Limited announced it has signed an agreement to acquire the premium actives-led beauty brand Minimalist, as it continues to evolve its Beauty & Wellbeing portfolio towards higher growth and demand spaces in India. The acquisition was completed in April.
In March, Unilever announced it has agreed the sale of The Vegetarian Butcher, a non-strategic asset, given its limited scalability.
Enhancing our Personal Care portfolio in premium and high growth spaces, Unilever acquired Wild in April and announced that it has signed an agreement to acquire Dr. Squatch in June.
The quarterly interim dividend for the second quarter is €0.4528, in line with the Q1 2025 dividend and up 3.0% versus Q2 2024. The €1.5 billion share buyback programme, announced and commenced in February, was completed at the end of May.