Unilever PLC reported its fourth‑quarter 2025 results on February 12 2026, showing a net profit attributable to shareholders’ equity from continuing operations of €5.68 billion, after excluding a €3.79 billion gain from the completed ice‑cream spin‑off. Turnover for the year was €50.5 billion, a 3.8 % decline from €52.48 billion in 2024, but underlying sales grew 3.5 % year‑over‑year, driven by a 2.1 % volume increase and a 2.0 % price lift in the fourth quarter. The company’s operating margin expanded to 20.0 %, up 60‑65 basis points from the prior year, reflecting disciplined cost control and a higher mix of high‑margin beauty, wellbeing and personal‑care brands.
Unilever’s Q4 performance highlighted a 4.2 % acceleration in underlying sales growth, with volume growth at 2.1 % and price growth at 2.0 %. Revenue for the quarter missed consensus estimates by roughly 21 %, a shortfall attributed to weaker demand in legacy categories and currency headwinds. Despite the revenue miss, underlying earnings per share rose to €3.08, a 0.7 % increase YoY, underscoring the company’s ability to preserve profitability amid a challenging market environment.
The company announced a new €1.5 billion share‑buyback program that will commence in the second quarter of 2026, following a prior €1.5 billion buyback completed in May 2025. The program signals management’s confidence in the post‑demerger “RemainCo” structure and its ability to generate strong cash flow.
The ice‑cream business was spun off in December 2025, creating a separate entity and providing Unilever with a €3.79 billion gain. The demerger was part of a broader portfolio transformation aimed at simplifying the company and focusing on higher‑margin categories.
"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 4% price lift and 2.1% volume growth, and successfully completed the Ice Cream demerger," said CEO Fernando Fernandez. "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," added Fernandez. "We enter 2026 as a simpler, more focused business."
Unilever guided for 2026 underlying sales growth of 4‑6 %, at the lower end of the range, reflecting caution about slower market conditions. The company expects a modest improvement in operating margin, supported by ongoing productivity initiatives and a higher mix of power brands. Management highlighted the need to navigate currency fluctuations and competitive pressures while maintaining cost discipline.
Market reaction to the results was mixed. Investors weighed the revenue miss and cautious 2026 guidance against the company’s strong underlying sales growth, margin expansion and the new share‑buyback program, leading to a range of responses across the market.
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