Unilever reported its Full Year 2024 results, with revenue reaching €60.8 billion, marking a 1.9% increase from FY 2023. The company's underlying operating profit for the year increased by 12.6%, demonstrating structural improvements in financial health.
However, fourth-quarter sales growth came in at 4%, falling slightly short of analysts' expectations of 4.1%. For the full year 2025, Unilever projects underlying sales growth within the 3% to 5% range, but anticipates a 'slower start to 2025 with subdued market growth'.
Alongside its earnings, Unilever announced definitive plans for the listing of its ice cream unit following its demerger. The primary listing will be in Amsterdam, with secondary listings planned for London and New York.
The demerger of the Ice Cream business is a pivotal strategic move, expected to transform Unilever into a €52 billion business based on 2024 financials. This will result in a structurally higher gross margin of 46.7%, an underlying operating margin of 19.4%, and an improved return on invested capital of 19.1%.
Management remains committed to delivering positive hard currency earnings growth in 2025, provided the euro-dollar exchange rate remains stable. The multi-year objective for the remaining company is to achieve at least 2% volume growth and consistent gross margin expansion.
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