Unilever PLC Q1 2025 Trading Statement Summary
Business Context and Reporting Period
This Form 6-K filing, dated April 24, 2025, reports Unilever PLC's unaudited trading results for the first quarter of 2025. The company operates across five business groups: Beauty & Wellbeing, Personal Care, Home Care, Foods, and Ice Cream. The period reflects a resilient start to the year despite heightened global macroeconomic uncertainty.
Key Financial Metrics
- Turnover: €14.8 billion, a decrease of 0.9% compared to Q1 2024.
- Underlying Sales Growth (USG): 3.0%, driven by 1.3% volume growth and 1.7% price growth.
- Operating Margin: Full year 2025 outlook anticipates a modest improvement versus 18.4% in 2024. Specific Q1 margin figures are not provided in this trading statement.
- Productivity Savings: The productivity programme is ahead of plan, with approximately €550 million of savings expected by the end of 2025 (targeting €800 million total).
- Capital Allocation: An ongoing €1.5 billion share buyback programme is underway and expected to be completed in the first half of 2025.
- Dividend: Q1 2025 interim dividend declared at €0.4528 per ordinary share (up 6.1% vs Q1 2024).
Material Changes vs. Prior Period
- Turnover Decline: Reported turnover fell 0.9% due to a 2.7% negative impact from net disposals and a 1.1% negative currency impact, which offset the 3.0% underlying sales growth.
- Segment Performance:
- Personal Care: Turnover declined 4.4% (USG +5.1%) due to significant disposals (-7.1%) and currency headwinds.
- Home Care: Turnover declined 4.2% (USG +0.9%) driven by disposals (-2.5%) and currency (-2.6%).
- Beauty & Wellbeing: Turnover grew 2.9% (USG +4.1%), supported by strong Wellbeing brands.
- Ice Cream: Turnover grew 2.8% (USG +4.0%) ahead of its planned separation.
- Geographic Shifts: Developed markets grew 4.5% USG, while Emerging markets grew 2.0% USG. Latin America slowed to 1.5% USG due to retailer destocking, while North America grew 6.2% USG.
Outlook, Guidance, and Risks
- Full Year 2025 Outlook: Reconfirmed. Unilever expects USG between 3% and 5% and a modest improvement in underlying operating margin.
- Ice Cream Separation: On track for a demerger in Q4 2025. The new entity, "The Magnum Ice Cream Company," will list in Amsterdam, London, and New York. A Capital Markets Day is scheduled for September 9, 2025.
- Market Interventions: Management expects improvements in Indonesia and China in the second half of 2025 following operational turnarounds and strategic interventions.
- Risks and Contingencies:
- Macroeconomic uncertainty, currency volatility, and consumer sentiment remain key risks.
- Tariff impacts on profitability are expected to be limited and manageable.
- Restructuring costs are expected to be around 1.4% of Group turnover in 2025.
Investor Verification Checklist
- Verify the timeline and regulatory approvals for the Ice Cream demerger and the formation of The Magnum Ice Cream Company.
- Monitor the execution of the €1.5 billion share buyback completion in H1 2025.
- Track the turnaround progress in Indonesia and China, specifically volume recovery in H2 2025.
- Review the impact of the productivity programme on restructuring costs versus the targeted €800 million savings.
- Assess the sustainability of volume growth in Developed Markets versus the price-led growth in Emerging Markets.