Unilever Plc · LSE:ULVR
Unilever — H1 2025 Earnings Presentation
31 slides from Unilever's earnings presentation, Jul 31, 2025
Slide 1: H1 2025 Results
H1 2025 Results Fernando Fernandez & Srinivas Phatak 31 July 2025 1
Slide 2: Safe harbour statement
Safe harbour statement This presentation may contain forward-looking statements within the meaning of the securities laws of certain jurisdictions, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements other th
Slide 3: H1 performance supports full-year confidence
H1 performance supports full-year confidence 1 Underlying sales growth balanced across volume and price 2 Increased brand investment fuelled by strong gross margin 3 Continued outperformance in developed markets 4 Improving performance in emerging markets driven by APA 5 Good Ice Cream performance;
Slide 4: Sequential improvement despite subdued markets
Sequential improvement despite subdued markets Q2 2025 H1 2025 Volume and price 3.8% 3.4% UPG UVG USG 2.3% 2YR UVG CAGR Underlying sales growth Underlying sales growth 4.5% 4.0% 3.9% 3.8% 3.0% 1.8% Underlying volume growth 1.5% Underlying volume growth 2.9% 3.6% 2.7% 1.3% 1.8% 2.0% Underlying price
Slide 5: Power Brands growth improved in Q2 with volume growth above 2%
Power Brands growth improved in Q2 with volume growth above 2% Power Brands Q2 2025 Power Brands H1 2025 Volume and price 4.4% 3.8% UPG UVG USG 3.1% 2YR UVG CAGR 5.2% 5.4% Underlying sales growth Underlying sales growth 4.5% 4.4% 3.0% 2.1% 1.6% 4.1% 4.3% 3.1% 2.1% 1.2% Underlying volume growth Under
Slide 6: Premium innovations driving outperformance in developed markets
Premium innovations driving outperformance in developed markets North America Europe 23% of Group turnover 21% of Group turnover 5.4% Underlying sales growth • Strong performance led by Wellbeing and Personal Care 3.4% Underlying sales growth • Solid performance led by Home Care, Ice Cream and Perso
Slide 7: APA performance accelerating; subdued growth in Latin America
APA performance accelerating; subdued growth in Latin America Asia Pacific Africa Latin America 43% of Group turnover 13% of Group turnover 3.5% Underlying sales growth • India growth strengthened (H1 4%; Q2 5%) with continued share gains in a 0.5% Underlying sales growth • Price increases to offset
Slide 8: Beauty & Wellbeing
Beauty & Wellbeing €6.5bn turnover |19.4% UOM, (60)bps vs. PY Sustained strong Wellbeing performance offset softer growth in beauty H1 2025 UPG UVG USG 3.7% Underlying sales growth 6.8% 6.7% 3.2% 2YR UVG CAGR 5.2% 4.1% 3.4% 1.7% 1.0% Underlying volume growth 5.4% 5.7% 3.9% 2.5% 2.0% Q2'24 Q3'24 Q4'2
Slide 9: Personal Care
Personal Care €6.5bn turnover |22.1% UOM, (90)bps vs. PY Dove’s continued success powered by premium innovations H1 2025 UPG UVG USG 4.8% Underlying sales growth 6.4% 2.3% 2YR UVG CAGR 4.4% 5.3% 5.1% 4.5% 1.4% Underlying volume growth 4.4% 3.6% 2.7% 0.2% 3.1% 3.3% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Under
Slide 10: Home Care
Home Care €5.9bn turnover |15.5% UOM, (80)bps vs. PY Continued momentum in Europe partially offset by challenges in Latin America H1 2025 UPG UVG USG 1.3% Underlying sales growth 3.1% 2YR UVG CAGR 3.4% 3.0% 1.9% 1.8% 1.1% 0.9% Underlying volume growth 4.9% 3.3% 3.3% 1.0% 1.3% 0.2% Q2'24 Q3'24 Q4'24
Slide 11: Foods
Foods €6.6bn turnover |23.3% UOM, +100bps vs. PY Competitive growth led by Hellmann’s, strong margin progression H1 2025 UPG UVG USG 2.2% Underlying sales growth 1.1% 2YR UVG CAGR 2.7% 2.6% 2.8% 1.6% 0.3% 1.5% Underlying volume growth 1.7% 0.4% 0.4% 0.5% (1.1)% 1.9% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Und
Slide 12: Ice Cream
Ice Cream €4.6bn turnover |14.2% UOM, (40)bps vs. PY Good performance with improving execution and strong innovations H1 2025 UPG UVG USG 5.9% 1.9% 2YR UVG CAGR 9.8% Underlying sales growth 7.1% 4.3% 4.0% 3.8% (0.5)% Underlying volume growth 2.2% 1.8% 5.0% 6.7% (1.1)% 2.0% Q2'24 Q3'24 Q4'24 Q1'25 Q2
Slide 13: Creating a global, pure-play ice cream company
Creating a global, pure-play ice cream company Ice Cream demerger 1 July: standalone operating company within Unilever: The Magnum Ice Cream Company (“TMICC”) 9 September: TMICC Capital Markets Day with details on business strategy and value creation plan Early-October: Unilever circular available w
Slide 14: Unilever will retain a stake in TMICC, shares to be consolidated
Unilever will retain a stake in TMICC, shares to be consolidated Ice Cream demerger Retained stake*: Unilever to retain a <20% stake in TMICC Debt allocation: expected leverage of ~2x for Unilever and ~2.4x for TMICC, supporting strong capital structures Proposed share consolidation**: to enable com
Slide 15: USG more than offset by net disposals and adverse currency
USG more than offset by net disposals and adverse currency Turnover (3.2)% USG 3.4% A&D (2.5)% 1.9% 0.2% 1.5% (2.7)% (4.0)% €31.1bn €30.1bn H1 2024 UVG UPG Acquisitions Disposals Currency H1 2025 turnover turnover 15
Slide 16: Structural improvements delivering gross margin strength
Structural improvements delivering gross margin strength Strong gross margin progression Structural levers driving uplift 45.7% 45.0% Volume growth Positive mix 42.2% Net productivity gains 40.2% Cost control discipline 2022 2023 2024 H1 2025 16
Slide 17: Strong gross margin fuelled increased brand investment
Strong gross margin fuelled increased brand investment Underlying operating margin (UOM) (30)bps -% 0.1% (0.4)% Increased brand 19.6% investment in our top 19.3% growth opportunities H1 2024 H1 2025 Gross margin BMI Overheads UOM UOM 17
Slide 18: UEPS impacted by adverse currency
UEPS impacted by adverse currency Underlying earnings per share (UEPS) Current underlying EPS (2.1)% 1.5% 1.4% (0.2)% 0.4% (0.1)% (5.1)% €1.62 €1.59 H1 2024 Operational Finance Tax Share Minorities & Currency H1 2025 UEPS performance costs buybacks Other UEPS 18
Slide 19: ~100% cash conversion expected for FY; significant acquisitions in PC
~100% cash conversion expected for FY; significant acquisitions in PC Cash generation Portfolio reshaping Capital returns €1.5bn Bolt-on acquisitions €1.1bn Free cash flow in H1 2025 Share buyback completed in H1 2025 (1.1)bn H1 2025 Free cash flow vs. H1 2024 Portfolio pruning +3.0% ~100% Q2 2025 d
Slide 20: On track to deliver full year 2025 outlook
On track to deliver full year 2025 outlook • Underlying sales growth to be within our range of 3-5% Growth • Second half growth ahead of the first half despite subdued market conditions • Improvement in FY underlying operating margin versus 2024 Margin • Second half margins of at least 18.5% 20
Slide 21: H2 growth supported by continued strength in DMs & improving EMs
H2 growth supported by continued strength in DMs & improving EMs Momentum in developed markets Improvement in emerging markets • North America: continued • Asia Pacific Africa: outperformance supported by • Building momentum in India multi-year portfolio transformation and premium innovations • Retu
Slide 22: Laser focused on volume growth and gross margin expansion
Laser focused on volume growth and gross margin expansion From 2026 onwards Mid-single digit growth UVG of at least 2% (USG) Modest margin improvement Gross margin expansion (UOM) Top 1/3rd shareholder returns 22
Slide 23: Unilever financial profile post Ice Cream
Unilever financial profile post Ice Cream Unilever, post demerger Post demerger* based on FY 2024 Turnover ~ €52bn GM +160 bps UOM +100 bps ROIC +100 bps Cash conversion ~100% Expected leverage ~2x 23 *based on FY 2024 financials; actual post demerger impact may vary
Slide 24: Transforming Unilever into a consistent, higher performer
Transforming Unilever into a consistent, higher performer 1 More Beauty & Wellbeing and Personal Care 2 Disproportionate investment in the US and India 3 Decisive shift into premium segments 4 Desire at scale - every brand, every geography 5 Execution excellence across all channels, particularly onl
Slide 25: Transforming a 155-year-old brand
Transforming a 155-year-old brand 25
Slide 26: USG CAGR
11% 4% USG CAGR USG CAGR Turnover: 2014 2021 2024 € 1.1bn Turnover FY 2024 > 10% USG H1 2025 > 10% UVG H1 2025 26 2014 to 2024 turnover
Slide 27: Science Aesthetics Sensorials
SCIENCE AESTHETICS SENSORIALS “invisible” serum premium formats instant absorption burst SPF & materials 27
Slide 28: Vaseline
OTHERS SAY CONTENT SCALE ACTIVATION Vaseline Petroleum Jelly > 1 billion social media interactions many to many volume & variety cultural relevance 28
Slide 29: Resilient H1 performance amidst subdued markets
1 Resilient H1 performance amidst subdued markets 2 Building blocks in place for H2 growth acceleration 3 On track to deliver FY 2025 outlook 4 IC demerger in mid-Nov; Unilever will retain <20% stake 5 Unilever transformation continues; next phase is building a marketing and sales machine 29
Slide 30: Q&A
Q&A 30
Slide 31: Other financial guidance for 2025
Other financial guidance for 2025 • Capex above 3% of turnover • Restructuring around 1.4% of turnover • Net finance costs around 3% on average net debt • Underlying effective tax rate around 26% • Leverage of around 2x net debt / underlying EBITDA • Cash conversion of around 100% • Currency impact1