Today, Unilever announced its financial results for the first half of 2025, reporting underlying sales growth (USG) of 3.4%, supported by 1.5% volume growth and 1.9% price growth. The company’s turnover reached €30.1 billion, a decline of 3.2%, largely driven by adverse currency movements (-4.0%) and net disposals (-2.5%).
Despite topline pressure, gross margin improved to 45.7%, enabling increased brand and marketing investment, which rose by 40 basis points to 15.5%. The underlying operating margin stood at 19.3%, down 30 basis points from the prior year, reflecting comparison against a strong 2024 performance.
CEO Fernando Fernandez commented: “Our continued outperformance in developed markets and decisive interventions in emerging markets accelerated our Q2 growth to 3.8%, with positive volume growth across all business groups. A strong gross margin and productivity gains ahead of plan allowed us to invest more in our brands and premium innovations.”
Unilever’s Power Brands, which contributed over 75% of turnover, grew 3.8%, with both volume and price contributing positively. In H1 of 2025, Beauty & Wellbeing underlying sales grew 3.7% with 1.7% from volume and 2.0% from price. Growth was led by continued momentum in Wellbeing, which was partially offset by subdued growth in beauty. This segment recorded €6.5 billion in turnover, down 0.8%.
Hair Care was flat, with low-single digit price offset by a decline in volume. Dove grew mid-single digit, supported by a significant relaunch featuring fibre repair technology and refreshed packaging. Growth was offset by a decline in Clear, which was impacted by slow market growth in China, and a volume decline in TRESemmé.
Core Skin Care delivered low-single digit growth, with erformance varying across brands and markets. Vaseline and Dove grew double-digit supported by innovation and strong execution.
Growth was partially offset by declines in China and Indonesia, where Unilever are resetting our business.
In Personal Care, the turnover recorded turnover €6.5 billion, down 5.9% year on year. And it grew 4.8%, with 1.4% from volume and 3.3% from price, with Dove growing high-single digit.
Developed markets, accounting for 44% of turnover, saw USG of 4.3%, led by strong volume performance in North America and Europe. This marks the fourth consecutive quarter of over 4% USG in developed markets. Emerging markets, which represent 56% of turnover, grew 2.8%, with price increases driving the majority of growth. India posted 4% growth in H1, improving to 5% in Q2. Meanwhile, China and Indonesia declined in the first half but showed signs of recovery in the second quarter.
Looking ahead, Unilever expects full-year USG within the 3% to 5% range, with stronger momentum in the second half, particularly in Asia. The company also anticipates a rebound in underlying operating margin in H2 to at least 18.5%, a notable improvement versus H2 2024.
Fernandez added: “We are on track to demerge Ice Cream by mid-November. Going forward, our focus will be on scaling Beauty & Wellbeing and Personal Care, intensifying investments in the US and India, and accelerating premium segments and digital commerce.”
