Unilever (ULVR) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 delivered 3.0% underlying sales growth, with 1.3% from volume and 1.7% from price, reflecting resilience in challenging market conditions and softer markets.

• Power Brands grew 3.0%, led by Dove (over 8% growth), Vaseline, Liquid I.V., and Magnum, with premium innovations and strong developed market performance.

• Q1 2025 turnover was €14.8bn, down 0.9% year-over-year, impacted by 2.7% from net disposals and 1.1% from currency headwinds.

• CEO emphasized renewed focus on performance, execution, consumer-centricity, and innovation-led growth.

• Transformation efforts include portfolio optimization, productivity programs, and a frontline, market-driven approach.

Financial highlights

• Q1 2025 turnover: €14.8bn, down 0.9% year-over-year, with disposals impacting by (2.7)% and currency by (1.1)%.

• Power Brands, representing over 75% of turnover, grew in line with the group at 3%, with Dove up over 8%.

• Developed markets grew 4.5% (volumes up 3.3%), led by North America (6.2% growth, 4% volume); Latin America lagged at 1.5% due to volume declines.

• Gross margin remains structurally strong at 45%, supporting continued brand investment.

• Quarterly interim dividend of €0.4528 per share, up 6.1% vs Q1 2024.

Outlook and guidance

• Full-year 2025 underlying sales growth expected in the 3% to 5% range, with a modest improvement in underlying operating margin versus 18.4% in 2024.

• H1 and H2 margins expected to be more balanced than prior year.

• Direct impact of tariffs on profitability anticipated to be limited and manageable.

• Capex above 3% of turnover, restructuring at 1.4%, net finance costs at 3% of average net debt, leverage targeted at 2x net debt/EBITDA, and underlying effective tax rate at 26%.

• Committed to delivering profit growth in hard currency, despite FX volatility.