Unilever (ULVR) Q3 2025 TU earnings summary

Executive summary

• Achieved 3.9% underlying sales growth (USG) in Q3 2025, with all business groups above 3% USG and strong performance in developed markets, especially North America (5.5% USG, 5.4% volume), and improvements in emerging markets.

• Power Brands delivered 4.4% USG and 1.7% volume growth, led by premium innovations and strong brand execution.

• Ice Cream Demerger preparations are on track for completion in Q4 2025, with shareholder approval for share consolidation and a revised timeline due to the U.S. government shutdown.

• Turnover for Q3 was €14.7bn, down 3.5% year-on-year, impacted by a negative 6.1% currency effect and 1% from net disposals.

• Acquisition of Dr. Squatch completed, expanding premium male grooming in North America.

Financial highlights

• Q3 2025 underlying sales growth was 3.9%, with underlying volume growth of 1.5% and price growth of 2.4%.

• Q3 turnover was €14.7bn, down 3.5% year-on-year due to currency and net disposals.

• Acquisitions contributed 0.5% to turnover, led by K18, Wild, and Dr. Squatch.

• Quarterly dividend increased by 3% to €0.4528 per share.

• Full-year adverse currency impact expected to be around 6% on turnover and 30bps on underlying operating margin.

Outlook and guidance

• Full-year USG expected within 3%-5% multi-year range, with H2 growth ahead of H1 and improved underlying operating margin for the full year.

• H2 margins projected at least 18.5% (or 19.5% excluding Ice Cream).

• Capex to be above 3% of turnover, restructuring costs around 1.2% of turnover, and net finance costs less than 3% of average net debt.

• Underlying effective tax rate expected around 26%, leverage targeted at 2x net debt/underlying EBITDA.

• Ice Cream to be reported as a discontinued operation from Q4 2025.