Unilever (ULVR) 23rd annual dbAccess Global Consumer Conference summary

Leadership and Cultural Transformation

• Over 70% of board and executive team replaced in the past 3-4 years, driving a shift toward performance, accountability, and incentive alignment.

• Emphasis on simultaneous performance and transformation, with a culture of accountability and no tolerance for underperformance.

• Leadership confident in managing rapid change without fatigue, aiming for consistent outperformance.

Strategic and Portfolio Transformation

• Transitioning to a focused Home and Personal Care (HPC) pureplay, with 90% turnover in #1 or #2 market positions and proven top-tier volume growth.

• Completed separation of the €8bn ice cream business and progressing with the foods business separation, integrating with McCormick to become a pure-play HPC company.

• Portfolio now concentrated in 25 power brands, representing 78% of revenue and driving outperformance.

• Portfolio weighted toward Beauty & Wellbeing and Personal Care (67% of turnover), with strong presence in the US and India.

• Model emphasizes premiumization, digital commerce, and higher brand investment, with a 3-year volume growth CAGR of 2.5%.

Financial Performance and Outlook

• Achieved 3.8% underlying sales growth in Q1, with 2.9% volume growth; nine-quarter average volume growth above 2.4%, outperforming market and peers.

• 80% of business segments growing over 4% in volume, supporting a 2024 outlook of 4-6% sales growth and >2% volume growth.

• Pro forma 2025 turnover projected at €39bn, with gross margin above 48% and underlying operating margin above 19%.

• Margin improvement expected despite €750-900m inflationary pressures, managed through pricing, efficiencies, and premiumization.

• Capital returns to accelerate, with ~€6bn planned from 2026 to 2029 and a dividend payout ratio of 60%.