Unilever PLC's Net Profit Declines 5.1% in Q2 2025

Unilever PLC reported its Q2 2025 results, with turnover at €15.4 billion, a decrease of 4.6% compared to the same period last year. Net profit for the period stood at €3.8 billion, reflecting a 5.1% decrease year-over-year. The company's underlying sales growth (USG) for the second quarter was 3.8%, with volume contributing 1.8% and price 2.0%.

Performance Drivers

The first half saw an underlying sales growth of 3.4%, driven by 1.5% from volume and 1.9% from price. Power Brands, accounting for over 75% of turnover, grew by 3.8% in the first half. Beauty & Wellbeing recorded 3.7% growth, with Personal Care up 4.8%. Home Care increased by 1.3%, Foods by 2.2%, and Ice Cream by 5.9%. Developed markets showed strong performance with 4.3% USG, marking the fourth consecutive quarter above 4% in these regions. Emerging markets, however, grew at a slower pace of 2.8%, with India growing 4% on a consolidated basis, but China and Indonesia experienced declines in the first half.

Productivity and Brand Investment

The company achieved a gross margin of 45.7%, which remained flat compared to the strong first half of 2024. Brand and marketing investment increased by 40 basis points to 15.5% of turnover, demonstrating continued investment in brands and innovations. The productivity program is ahead of schedule, with approximately €650 million in savings expected by the end of 2025, contributing to improved overheads.

Strategic Developments and Outlook

Unilever is on track to demerge its Ice Cream business by mid-November, with operational separation already complete. The new standalone entity, The Magnum Ice Cream Company (TMICC), will hold a Capital Markets Day on September 9, 2025. For the full year 2025, Unilever anticipates underlying sales growth to be within the 3% to 5% range, with stronger growth projected in the second half due to continued strength in developed markets and improving performance in emerging markets, especially India, Indonesia, and China. The company also expects an improvement in underlying operating margin for the full year, with second-half margins of at least 18.5%.