Unilever’s Q3 2025: Broad-Based Growth Despite Currency Headwinds

Unilever (LON: ULVR) reported underlying sales growth of 3.9% in the third quarter of 2025, signaling a positive trajectory despite a 3.5% decrease in overall turnover.

The company reaffirmed its full-year outlook, anticipating growth within the 3% to 5% range.

Turnover reached €14.7 billion, a decrease of 3.5% compared to the prior year, impacted by a 6.1% currency headwind and a 1.0% reduction from net disposals.

Excluding Ice Cream, underlying sales growth was 4.0%, a sequential improvement from 3.1% in the second quarter.

The company's Power Brands drove performance, with underlying sales growth of 4.4%, fueled by a 1.7% increase in volume and a 2.6% rise in price.

Unilever also increased its quarterly dividend by 3% compared to Q3 2024, demonstrating confidence in its financial health.

Unilever is progressing with the demerger of its Ice Cream business, expected to be completed in Q4 2025. The demerger aims to create a simpler Unilever with a sharper focus and structurally higher margin profile.

Post-demerger, Unilever will retain approximately 19.9% stake in The Magnum Ice Cream Company (TMICC) for up to five years.

Key Financial Highlights:

• Revenue: €14.7 billion (down 3.5% year-over-year)
• Underlying Sales Growth: 3.9% (4.0% excluding Ice Cream)
• Volume Growth: 1.5% (1.7% excluding Ice Cream)
• Dividend: Up 3% versus Q3 2024

The Beauty & Wellbeing segment led the charge with 5.1% underlying sales growth, driven by double-digit growth in brands like Dove hair, Vaseline, and Liquid I.V. Personal Care followed with 4.1% growth, while Home Care and Foods grew by 3.1% and 3.4%, respectively. Ice Cream saw a 3.7% increase.

Developed markets saw 3.7% underlying sales growth, led by a strong performance in North America. Emerging markets growth accelerated to 4.1%, with a return to growth in Indonesia and low-single-digit growth in China. India's growth was 2%, reflecting a transitory impact from Goods and Services Tax reforms.

Driver Breakdown:

• Innovation: Strong performance in developed markets driven by innovation.
• Emerging Markets: Improved performance in key emerging markets like Indonesia and China.
• Power Brands: Growth fueled by key brands across all business groups.

CEO Fernando Fernandez stated, “We continued to outperform in developed markets in the third quarter, led by our strong innovation programme, and, following decisive interventions, stepped up our emerging markets performance with a return to growth in Indonesia and China.”

Unilever is maintaining its focus on premium segments, digital commerce, and key markets like the US and India. The company anticipates second-half operating margins of at least 18.5% (or at least 19.5% excluding Ice Cream), a significant improvement from the second half of 2024.