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Highlights

  • Unilever’s underlying sales growth reached 3.4% in H1 2025, with volume up 1.5% and price up 1.9%.
  • Turnover declined by 3.2% year-on-year, impacted by a 4.0% adverse currency effect and 2.5% from disposals.
  • Free cash flow fell to GBP 1.1 billion in H1 2025, compared to GBP 2.2 billion in H1 2024.

Unilever plc (LSE:ULVR) reported first-half 2025 results showing a modest 3.4% increase in underlying sales growth (USG), split between 1.5% volume growth and 1.9% pricing. Despite this, total turnover declined by 3.2% year-on-year to GBP 30.1 billion, primarily due to a negative 4.0% currency impact and 2.5% from net disposals.

By category, Personal Care led growth at 4.8% USG, followed by Ice Cream at 5.9%. Beauty & Wellbeing rose 3.7%, while Home Care and Foods posted lower growth at 1.3% and 2.2%, respectively. Developed markets, which account for 44% of turnover, grew 4.3%, with broad-based volume gains. Emerging markets grew 2.8%, though results were mixed geographically — India delivered 4% growth, while China and Indonesia experienced declines.

Gross margin remained flat at 45.7%, while brand and marketing investment increased 40bps to 15.5% of turnover. The underlying operating margin declined by 30bps to 19.3%, reflecting a drop in underlying operating profit to GBP 5.8 billion (down 4.8%). Reported operating profit was GBP 5.3 billion, down 10.6%, mainly due to higher disposal-related charges.

Unilever confirmed that its productivity programme is ahead of plan, with GBP 650 million in expected savings by year-end 2025, out of a GBP 800 million target. Free cash flow dropped to GBP 1.1 billion in H1 2025 from GBP 2.2 billion the previous year, driven by Ice Cream separation costs and increased working capital requirements.

The Ice Cream division completed operational separation in July and is on track for demerger by mid-November 2025. Unilever will retain under 20% of the new entity, The Magnum Ice Cream Company (TMICC), for up to five years post-demerger.

Net debt rose to GBP 26.4 billion, translating into a net debt/underlying EBITDA ratio of 2.1x. EPS on an underlying basis fell 2.1% to GBP 1.59, while diluted EPS declined 3.7% to GBP 1.42. The quarterly dividend was raised 3% year-on-year to GBP 0.4528, and a GBP 1.5 billion share buyback was completed during the half. For full-year 2025, Unilever expects USG in the 3–5% range with higher growth in H2, and an improvement in underlying operating margin relative to H1.

Unilever shares were trading 0.07% higher at GBX 4,461.00 per share as of 31 July 2025.