Sharper focus and disciplined execution driving competitive performance

Statement from Fernando Fernandez, CEO

“In 2025 we became a simpler, sharper, and faster Unilever, delivering our commitment to volume growth, positive mix and strong gross margin. Our underlying sales growth improved throughout the year as we landed a strong innovation plan, drove improvements in key emerging markets and successfully completed the Ice Cream demerger.

“We are moving at speed to build a business that drives desire at scale in our brands, execution excellence across all channels and cost discipline. We have set clear priorities for growth – building a brand portfolio for the future, with more Beauty, Wellbeing and Personal Care, prioritising premium segments and digital commerce, and anchoring our growth in the US and India.

“Despite slowing markets, our sharper focus and disciplined execution underpin our confidence for 2026 and beyond.”

Strategic highlights

In 2025 we accelerated the strategic reshaping of Unilever, further focusing our portfolio on higher-growth categories, with increased exposure to Beauty & Wellbeing and Personal Care. We continue to be disciplined, with targeted bolt-on acquisitions including Dr. Squatch in North America and Minimalist in India, alongside disposals of non-core and local brands, primarily in Foods. The demerger of the Ice Cream business was completed in December, creating a simpler Unilever with a clearer strategic and capital allocation focus.

We advanced our shift towards a more category-led and execution-focused operating model. We created separate sales organisations by Business Group across the largest markets to strengthen accountability and speed of decision-making, while the One Unilever model simplified operations in smaller markets. In parallel, we took decisive actions to reset our businesses in Indonesia and China, including changes to route-to-market and portfolio optimisation. Both markets showed improving trends as these actions took hold through the year.

We strengthened the capabilities required to support our strategy and drive sustained volume growth, positive mix with structurally higher gross margin. We scaled premium innovations across the core portfolio and expanded platforms such as Whole Body Deodorants and Wonder Wash across new variants and new markets. We also accelerated our shift to social-first demand generation, with brands such as Dove and Vaseline embracing creator-led content and always-on digital engagement.

Looking ahead, we will continue to focus on the three shifts that will be critical to support sustained outperformance in rapidly changing markets: building desire at scale with our brands, ensuring the organisation is fit for the AI age, and reinforcing a play-to-win culture with clear accountability.

Outlook

We expect underlying sales growth for full year 2026 to be within our multi-year guidance range of 4% to 6%, with at least 2% underlying volume growth. 2026 growth is expected to be at the bottom end of the underlying sales growth range reflecting the slower market conditions. We anticipate a modest improvement in underlying operating margin for the full year versus 20.0% in 2025.

Full-Year Review: Unilever Group

Growth

Underlying sales growth in 2025 was 3.5%, with 1.5% from volume and 2.0% from price, with sequential improvement through the year led by volume. Underlying sales growth in the fourth quarter of 4.2% was the strongest of the year despite slowing markets, with a balanced contribution from volume and price. Power Brands continued to lead growth delivering 4.3% underlying sales growth in 2025, with 2.2% volume. Business Groups performance was led by Personal Care and Beauty & Wellbeing.

• Beauty & Wellbeing: 4.3% underlying sales growth was led by double-digit growth in Wellbeing, Dove and Vaseline. Underlying sales growth of 4.7% in the fourth quarter was driven by a stronger Asia Pacific Africa delivery which offset slower growth in the Wellbeing market.
• Personal Care: 4.7% underlying sales growth was supported by market share gains, premium innovations, and commodity-driven price increases. In the fourth quarter, underlying sales growth remained strong at 5.1%.
• Home Care: 2.6% underlying sales growth was led by volume. Underlying sales growth accelerated to 4.7% in the fourth quarter with 4.0% volume supported by a sequential improvement in key emerging markets.
• Foods: 2.5% underlying sales growth was driven by emerging markets. Developed market underlying sales growth was flat despite declining markets, as Hellmann’s continued to perform well. In the fourth quarter, underlying sales growth was 2.3%, as markets remained subdued.

Developed markets (41% of group turnover) delivered above market underlying sales growth of 3.6%, led by 2.6% volume growth. In the fourth quarter, underlying sales growth slowed to 1.7%, with 0.5% volume, reflecting slower market growth in both the US and Europe.

• North America: 5.3% underlying sales growth with 3.8% volume was supported by market share gains. Underlying sales growth of 2.8% in the fourth quarter, with 1.3% volume, reflected share gains in a slower market.
• Europe: 1.5% underlying sales growth, with successful premium innovation in Home Care partially offset by a decline in Foods. Underlying sales growth of 0.1% in the fourth quarter reflected continued subdued markets.

Emerging markets (59% of group turnover) underlying sales grew 3.5%, with 0.8% volume, led by mid-single digit growth in Asia Pacific Africa. In the fourth quarter, underlying sales growth accelerated to 5.8% led by volume growth of 3.2%, benefitting from decisive actions taken earlier in the year in Indonesia and China, alongside a return to growth in Latin America.

• India: 4% underlying sales growth with 3% volume was supported by gradually improving market conditions and a competitive performance with share gains. Underlying sales growth of 5% in the fourth quarter, with 4% volume, reflected a step up in performance and recovery post Goods and Services Tax related disruption.
• Indonesia underlying sales grew 4% and China was flat, with both seeing a return to growth in the second half. In the fourth quarter both delivered their strongest quarter of the year, benefitting from decisive actions earlier in the year and soft comparators.
• Latin America: 0.5% underlying sales growth, as pricing was largely offset by volume declines in challenging markets. Underlying sales grew 3.2% in the fourth quarter driven by a recovery in Brazil as corrective actions in laundry and deodorants began to show progress.

Turnover was €50.5 billion, down -3.8% versus the prior year, including -5.9% from currency and -1.2% from disposals net of acquisitions. The currency impact during the year was primarily driven by Latin American currencies, the Indian Rupee, the US dollar, and the Turkish Lira depreciating against the Euro.

Note: Following the demerger of the Ice Cream Business, all figures are on a continuing basis, which excludes Ice Cream, unless specifically noted.

Profitability

Underlying operating profit was €10.1 billion, a decrease of -1.1% versus the prior year, as currency headwinds more than offset strong operational delivery. Underlying operating margin of 20.0% was up 60bps against a prior year base of 19.4%, driven by structural improvements in gross margin and overhead discipline, which enabled continued investment behind our brands.

• Gross margin increased 20bps to 46.9%, driven by productivity initiatives, volume leverage and positive mix. The year-on-year improvement was broadly balanced between the first and second half, with strong execution across the value chain sustaining margins despite a more volatile cost and currency environment.
• Brand and marketing investment (BMI) increased 10bps to 16.1% of turnover, as we continued to invest competitively behind our brands, particularly in Beauty & Wellbeing and Personal Care. This reflects the significant step up in BMI over the last four years, up 300bps.
• Overheads improved strongly by 50bps, driven by the delivery of our productivity programme ahead of plan and continued cost discipline across the organisation. These savings more than offset inflationary pressures and stranded costs related to the demerger of Ice Cream, demonstrating the impact of our simplification efforts.

Operating profit was €9.0 billion, up 2.4% versus 2024, reflecting lower restructuring costs and a reduced loss on disposals compared to the prior year.

Productivity programme

Our productivity programme, launched in 2024 to simplify the business, evolve our category-focused business model and remove stranded overheads related to Ice Cream, is further ahead of schedule in its delivery of €800 million of savings. Unilever delivered €670 million of savings by the end of 2025, above the previous expectation of €650 million. The remaining €130 million of savings will be delivered in 2026.

Ice Cream demerger

On 6 December 2025, Unilever completed the demerger of its Ice Cream business, with The Magnum Ice Cream Company N.V. (TMICC) listed as a standalone, pure-play global Ice Cream business in Amsterdam, London and New York. We have retained a minority stake of approximately 19.9% in TMICC, which will be sold down in an orderly and considered manner to pay demerger costs and to maintain capital flexibility.

Capital allocation

Our capital allocation priorities remain unchanged. We will invest in the growth and productivity of Unilever as a priority. Alongside this we will continue to reshape our portfolio, return capital to shareholders through our attractive dividend and use surplus cash to fund share buybacks.

In 2025, we significantly shifted Unilever’s portfolio through several key activities, including the demerger of Ice Cream:

• December 2025: Completed the demerger of The Magnum Ice Cream Company, creating a more focused Unilever.

We undertook targeted acquisitions and divestments to access growth opportunities in our priority areas and to focus on fewer, bigger and more scalable brands. In aggregate, we have completed or announced ten transactions since the start of 2025.

• In April 2025 and September 2025, Unilever completed the acquisitions of Wild and Dr. Squatch, respectively. These brands enhance our premium Personal Care portfolio.
• April 2025: Hindustan Unilever Limited completed the acquisition of premium actives-led beauty brand Minimalist, as it continues to evolve its Beauty & Wellbeing portfolio towards higher growth and demand spaces in India.
• April 2025: Unilever completed the sale of Conimex.
• September 2025: Unilever completed the sale of The Vegetarian Butcher.
• November 2025: Unilever completed the sale of Kate Somerville.
• January 2026: Unilever announced the sale of our Indonesia Tea Business. The transaction is expected to close in the first half of 2026.
• January 2026: Unilever announced the agreement to sell our Home Care businesses in Colombia and Ecuador. The transactions are expected to close during 2026.
• February 2026: Unilever completed the sale of Graze.

In 2025, we returned €6.0 billion to shareholders through cash dividends and share buybacks.

The quarterly interim dividend for the fourth quarter is €0.4664 per share, an increase of 3.0% versus the third quarter.

Today we announce a new share buyback of up to €1.5 billion that is expected to commence in the second quarter of 2026. This follows the completion of a €1.5 billion share buyback programme in May 2025.

Full Year Review: Business Groups

Beauty & Wellbeing

Beauty & Wellbeing underlying sales grew 4.3%, with 2.2% from volume and 2.1% from price. Growth was driven by double-digit growth in Wellbeing, Vaseline, and Dove reflecting the ongoing elevation of the portfolio through science-led, premium innovations. In the fourth quarter, underlying sales growth was 4.7% with 2.8% from volume, supported by improved performance in several key markets in Asia Pacific Africa. Wellbeing continued to outperform its market, despite growth moderating as category conditions softened.

• Hair Care grew low-single digit with positive price partially offset by negative volume. Dove grew double-digit with balanced volume and price, driven by the launch of its new fibre repair technology range. This was partially offset by actions taken to reduce tail brands in the portfolio and softness in some emerging markets impacting brands such as Sunsilk and Clear.
• Core Skin Care delivered mid-single digit growth, with positive contributions from volume and price. Growth was led by Vaseline, which delivered double-digit growth for the third straight year.
• Wellbeing grew double-digit led by volume. Nutrafol and Liquid I.V. delivered double-digit growth, while OLLY grew high-single digit, supported by premium gummy innovations.
• Prestige Beauty delivered low-single digit growth driven by price. Growth was led by strong double-digit growth in Hourglass and K18, while Dermalogica and Paula’s Choice declined but returned to growth in the second half.

Underlying operating profit was €2.5 billion, down -3.2% versus the prior year. Underlying operating margin decreased -20bps to 19.2% as a significant improvement in overheads was offset by a slight decline in gross margins and a significant increase in brand and marketing investment behind Power Brands and premium innovations.

Personal Care

Personal Care underlying sales grew 4.7%, with 1.1% from volume and 3.6% from price. This competitive growth was led by commodity-driven price increases, while volume was supported by premium innovation, particularly in Dove, which grew high-single digit. Strong volume growth in developed markets was partially offset by a decline in Latin America, where we outperformed a softer market. In the fourth quarter, underlying sales growth remained strong at 5.1%, with positive volumes and an acceleration in price growth.

• Deodorants grew low-single digit, with positive price and volume. Growth was led by double-digit growth in Dove, supported by the continued success of Whole Body Deodorants. This was partially offset by a volume decline in Latin America amidst softer market conditions. In the fourth quarter, growth improved sequentially to mid-single digit, reflecting early progress from actions taken to improve format mix in Brazil.
• Skin Cleansing grew mid-single digit, led by price and premiumisation. Dove grew mid-single digit, while Lifebuoy was flat as volumes were impacted by commodity-driven price increases.
• Oral Care grew mid-single digit, driven by strong growth in Closeup and Pepsodent as both brands launched premium innovations including whitening and naturals ranges.

Underlying operating profit was €3.0 billion, down -1.4% versus the prior year. Underlying operating margin increased 50bps to 22.6% driven by improvements in gross margin and overheads, which was partially offset by a strong step-up in brand investment, particularly in the US and premium segments.

Home Care

Home Care underlying sales grew 2.6%, with 2.2% from volume and 0.4% from price. Performance improved sequentially through the year, driven by strong growth in Europe supported by premium innovations and improved execution. This was partially offset by a decline in Brazil due to slower market conditions and pricing actions taken to restore competitiveness. In the fourth quarter, underlying sales growth accelerated to 4.7% with 4.0% from volume, which was supported by a return to growth in Brazil as pricing actions took effect and continued strong volume in India.

• Fabric Cleaning was flat with flat volume and price. Wonder Wash continued to scale and delivered another year of strong growth following its launch in 2024, and is now in 30 markets. Performance was offset by a decline in Brazil, Home Care’s second-largest market. Pricing actions taken to restore competitiveness have started to show early progress with Brazil returning to growth in the fourth quarter.
• Home & Hygiene grew mid-single digit, with strong performances from Cif and Domestos. Growth was led by premium innovations, including the launch of Cif Infinite Clean, a multi-purpose cleaner powered by probiotics.
• Fabric Enhancers grew high-single digit, led by volume. Comfort delivered high-single digit volume led growth, supported by premium formats and fragrance-led innovation.

Underlying operating profit was €1.7 billion, down -3.8% versus the prior year. Underlying operating margin increased 40bps to 14.9% as commodity and foreign exchange headwinds to gross margin were more than offset by improved overheads and disciplined brand investment focused on fewer, higher-impact innovations.

Foods

Foods underlying sales grew 2.5%, with 0.8% from volume and 1.7% from price, with growth driven by strong performance in emerging markets. Developed market underlying sales growth was flat despite declining markets as Hellmann’s continued to perform well, benefitting from the strength of its flavoured mayonnaise range across over 30 markets. In the fourth quarter, underlying sales growth was 2.3% with 1.3% from volume, reflecting a continued slower market.

• Cooking Aids grew low-single digit, driven primarily by price. Knorr grew low-single digit with a slight decline in developed markets offset by positive volume and price in emerging markets.
• Condiments delivered mid-single digit growth with balanced volume and price. Hellmann’s grew mid-single digit led by volume with continued premiumisation and particularly strong momentum in emerging markets.
• Unilever Food Solutions was flat, with positive volume in North America offset by declines in China, reflecting weaker out-of-home consumption and macroeconomic pressure.

Underlying operating profit was €2.9 billion, up 2.7% versus the prior year. Underlying operating margin increased 130bps to 22.6%, driven primarily by improvements in gross margin and overheads, alongside disciplined brand investment as we continue to drive our focused Foods strategy.