REG - Unilever PLC - 2025 Full Year Results
12/02/2026 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260212:nRSL6765Sa&default-theme=true
RNS Number : 6765S Unilever PLC 12 February 2026
2025 Full Year Results
Sharper focus and disciplined execution driving competitive performance
Full Year Key Highlights
• Underlying sales growth (USG) 3.5%, with 1.5% volume growth;
stronger fourth quarter USG of 4.2%, with 2.1% volume
• Turnover €50.5 billion, down (3.8)%; with adverse currency
(5.9)% and net disposals (1.2)%
• Power Brands (78% of turnover) leading growth with 4.3% USG and
volume up 2.2%
• Strong gross margin 46.9%, up 20bps, supporting brand &
marketing investment up 10bps to 16.1%
• Underlying operating margin expansion to 20.0%, up 60bps, driven
by disciplined overhead management
• Underlying EPS increased 0.7%; diluted EPS increased 6.2%
• Productivity programme delivering ahead of plan, with cumulative
c.€670 million savings by end of 2025
• 100% cash conversion with FCF of €5.9 billion; down €0.4
billion primarily due to Ice Cream demerger costs
• Quarterly dividend raised 3% vs third quarter 2025
• New €1.5 billion share buyback announced
• Further portfolio transformation; Ice Cream demerged and 10
transactions closed or announced since start of 2025
Note: Following the demerger of the Ice Cream Business, all figures are on a
continuing basis, which excludes Ice Cream, unless specifically noted.
Full Year Key Figures
Underlying performance GAAP measures
(unaudited) 2025 vs 2024((b)) 2025 vs 2024((b))
Full Year
Underlying sales growth (USG) 3.5% Turnover 50.5bn (3.8)%
Beauty & Wellbeing 4.3% Beauty & Wellbeing €12.8bn (2.3)%
Personal Care 4.7% Personal Care €13.2bn (3.4)%
Home Care 2.6% Home Care €11.6bn (6.4)%
Foods 2.5% Foods €12.9bn (3.2)%
Underlying operating profit €10.1bn (1.1%) Operating profit €9.0bn 2.4%
Underlying operating margin 20.0% 60bps Operating margin 17.9% 110bps
Underlying earnings per share €3.08 0.7% Diluted earnings per share €2.59 6.2%
Free cash flow €5.9bn €(0.4)bn Net profit €6.2bn 2.9%
Fourth Quarter
USG 4.2% Turnover €12.6bn (2.7)%
Quarterly dividend payable in March 2026 ((a)) €0.4664 per share((b))
(a) See note 9 for more information on dividends
(b) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
Chief Executive Officer Statement
"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."
Fernando Fernandez
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
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change
Full Year €50.5bn 3.5% 1.5% 2.0% (1.2)% (5.9)% (3.8)%
Fourth Quarter €12.6bn 4.2% 2.1% 2.0% 1.0% (7.5)% (2.7)%
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.
Profitability
(unaudited) UOP UOP growth UOM% Change in UOM OP OP growth OM% Change in OM
Full Year €10.1bn (1.1)% 20.0% 60bps €9.0bn 2.4% 17.9% 110bps
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 10 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.
Conference Call
Following the release of this trading statement on 12 February 2026 at 7:00 AM
(UK time), there will be a webcast at
8:00 AM available on the website www.unilever.com/investors/results-events/.
(https://www.unilever.com/investors/results-events/)
A replay of the webcast and the slides of the presentation will be made
available after the live meeting.
Upcoming Events
Date Events
17 February 2026 CAGNY Conference 2026
30 April 2026 Q1 2026 Trading Statement
Full Year Review: Business Groups
Full Year 2025 Fourth Quarter 2025
(unaudited) Turnover USG UVG UPG UOM Change in UOM Turnover USG UVG UPG
Unilever €50.5bn 3.5% 1.5% 2.0% 20.0% 60bps €12.6bn 4.2% 2.1% 2.0%
Beauty & Wellbeing €12.8bn 4.3% 2.2% 2.1% 19.2% (20)bps €3.2bn 4.7% 2.8% 1.8%
Personal Care €13.2bn 4.7% 1.1% 3.6% 22.6% 50bps €3.3bn 5.1% 0.6% 4.5%
Home Care €11.6bn 2.6% 2.2% 0.4% 14.9% 40bps €2.8bn 4.7% 4.0% 0.6%
Foods €12.9bn 2.5% 0.8% 1.7% 22.6% 130bps €3.3bn 2.3% 1.3% 1.0%
Beauty & Wellbeing (25% of Group turnover)
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €12.8bn 4.3% 2.2% 2.1% (0.6)% (5.8)% (2.3)% 19.2% (20)bps
Fourth Quarter €3.2bn 4.7% 2.8% 1.8% 0.5% (8.4)% (3.7)%
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 (20)bps 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 (26% of Group turnover)
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €13.2bn 4.7% 1.1% 3.6% (1.8)% (6.0)% (3.4)% 22.6% 50bps
Fourth Quarter €3.3bn 5.1% 0.6% 4.5% 4.7% (7.1)% 2.2%
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
Close Up 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 (23% of Group turnover)
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €11.6bn 2.6% 2.2% 0.4% (1.7)% (7.1)% (6.4)% 14.9% 40bps
Fourth Quarter €2.8bn 4.7% 4.0% 0.6% (0.2)% (8.5)% (4.4)%
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 (26% of Group turnover)
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €12.9bn 2.5% 0.8% 1.7% (0.8)% (4.7)% (3.2)% 22.6% 130bps
Fourth Quarter €3.3bn 2.3% 1.3% 1.0% (1.2)% (6.1)% (5.1)%
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.
Full Year Review: Geographical Areas
Full Year 2025 Fourth Quarter 2025
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €50.5bn 3.5% 1.5% 2.0% €12.6bn 4.2% 2.1% 2.0%
Asia Pacific Africa €22.4bn 4.6% 3.0% 1.6% €5.5bn 6.9% 5.7% 1.2%
The Americas €18.6bn 3.3% -% 3.2% €4.7bn 3.0% (0.8)% 3.8%
Europe €9.5bn 1.5% 1.2% 0.3% €2.4bn 0.1% (0.2)% 0.3%
Full Year 2025 Fourth Quarter 2025
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Emerging markets €30.0bn 3.5% 0.8% 2.7% €7.4bn 5.8% 3.2% 2.5%
Developed markets €20.5bn 3.6% 2.6% 0.9% €5.2bn 1.7% 0.5% 1.1%
North America €11.2bn 5.3% 3.8% 1.4% €2.8bn 2.8% 1.3% 1.5%
Latin America €7.4bn 0.5% (5.1)% 5.9% €1.9bn 3.2% (3.6)% 7.1%
Asia Pacific Africa (44% of Group turnover)
Underlying sales growth was 4.6%, with 3.0% from volume and 1.6% from price.
• India grew 4% on a consolidated basis, with underlying volume
growth of 3%. Underlying sales growth accelerated to 5% in the fourth quarter,
with 4% volume, with gains in market share. Growth was led by our premium
portfolio in Personal Care, Beauty & Wellbeing and strong delivery in
laundry liquids.
• China underlying sales were flat, with improvement in the second
half including mid-single digit growth in the fourth quarter. Actions taken to
reset the business, including strengthening our go-to-market approach and
accelerating premiumisation, drove improved results, although market growth
remained weak. Fourth quarter growth was led by Beauty & Wellbeing and
Personal Care, while Foods continued to be affected by a decline in restaurant
traffic.
• Indonesia delivered underlying sales growth of 4%, with a
significant recovery in the second half as a result of our extensive reset of
the business. Fourth quarter growth was 17% due to our operational
improvements and significant de-stocking in the prior year, which will not
benefit future periods.
• Africa delivered low-single digit growth with a slight volume
decline against a challenging consumer environment.
The Americas (37% of Group turnover)
Underlying sales growth was 3.3%, with flat volume and 3.2% from price.
• North America grew 5.3%, led by 3.8% from volume, reflecting the
benefits of the multi-year transformation of our portfolio towards Beauty
& Wellbeing and Personal Care. Growth was ahead of the market and was led
by Wellbeing, Skin Cleansing and Deodorants. In the fourth quarter, while we
continued to outperform our markets, our growth moderated as category growth
softened across most categories.
• Latin America grew 0.5%, with 5.9% from price largely offset by
(5.1)% from volume. Performance was impacted by economic and political
uncertainty in the region, which weighed on consumer sentiment. Brazil and
Mexico, our two largest markets, both declined low-single digit, largely
offsetting price-led growth in Argentina. In Brazil, the fourth quarter showed
early signs of stabilisation with flat underlying sales growth led by a return
to growth in Home Care.
Europe (19% of Group turnover)
Underlying sales growth was 1.5%, with 1.2% from volume and 0.3% from price.
• Europe delivered low-single digit growth as strong volume growth
in Home Care, behind further roll out of Wonder Wash and other premium
innovations, was partially offset by declines in Foods. Growth was uneven
across the markets, with good growth in France and Italy partially offset by
weakness in Germany. In the fourth quarter, underlying sales growth was 0.1%
as market growth slowed across our categories, as low single-digit growth in
Beauty & Wellbeing and Personal Care was offset by a decline in Foods.
Additional commentary on the financial statements - Full Year
Finance costs and tax
Net finance costs decreased by €17 million to €503 million in 2025. Higher
pension and other interest income was partially offset by an increase in other
interest costs.
The underlying effective tax rate for 2025 was 25.7% (2024: 25.9%). Decreases
in non-deductible interest and irrecoverable WHT were largely offset by lower
benefits from tax settlements versus 2024. The effective tax rate was 29.4%
which includes the impact of the separation of the Ice Cream business. This
compares to 28.7% in the prior year which included impacts linked to
disposals.
Joint ventures, associates and other income from non-current investments
Net profit from joint ventures and associates was €245 million, a decrease
of €5 million compared to 2024. Other loss from non-current investments was
€(17) million, versus a gain of €13 million in the prior year, primarily
due to currency movements.
Share consolidation
In December 2025, we implemented a share consolidation to maintain
comparability of Unilever's share price, earnings per share and dividends per
share before and after the demerger of Ice Cream. The share consolidation was
implemented on an 8 for 9 basis, whereby shareholders received 8 new Unilever
shares for every 9 shares previously held.
Earnings per share
For underlying, basic and diluted earnings per share, the impact of the share
consolidation has been applied retrospectively to prior periods to ensure
consistent comparability.
Underlying earnings per share increased 0.7% to €3.08, including (8.8)% of
adverse currency. The increase, despite adverse currency, reflects constant
currency profit growth, a reduction in the average number of shares driven by
the share buyback programme, which contributed 1.5%, and benefits from lower
tax. Diluted earnings per share of €2.59 increased by 6.2% versus the prior
year.
Restructuring costs
Restructuring costs were 1.2% of turnover at €599 million, a decrease from
€710 million in the prior year. This reduction reflects the higher
productivity programme restructuring costs in 2024. 2025 spend was
concentrated in supply chain, productivity initiatives and functional
transformation.
Free cash flow
100% cash conversion for the year, with free cash flow of €5.9 billion. This
was down €0.4 billion compared with €6.3 billion delivered in 2024 due
primarily to tax on disposals related to the Ice Cream demerger. Working
capital improvements during the year were more than offset by an increase in
tax on disposals and restructuring payments. Capital expenditures were largely
flat.
Underlying return on invested capital
Underlying return on invested capital remained strong at 19.0%. The slight
decline versus 19.1% in 2024 reflected the fall in underlying operating profit
primarily due to adverse currency impacts. Average invested capital in 2025
was largely flat versus 2024.
Net debt
Closing net debt was €23.1 billion compared to €24.5 billion at 31
December 2024. This translated into a net debt / underlying EBITDA ratio of
2.0x. The decrease in net debt was primarily driven by free cash flow and a
€3 billion payment by TMICC to Unilever ahead of the demerger as TMICC
raised separate debt facilities as a standalone entity. This was partially
offset by dividends paid and the €1.5 billion share buyback programme
executed during the first half of 2025.
Pensions
Pension assets net of liabilities were in surplus of €3.5 billion at 31
December 2025, compared with €3.0 billion at 31 December 2024. Higher
discount rates led to a decrease in liabilities and growth assets delivered
positive returns.
Share buyback programme
In February 2025, we announced a share buyback programme of up to €1.5
billion to be completed on or before 6 June 2025. The programme commenced on
13 February 2025 and was completed on 30 May 2025. We repurchased 27,815,955
ordinary shares.
Reflecting the Group's continued strong cash generation, the Board has
approved a new share buyback with an aggregate market value equivalent of up
to €1.5 billion, which will be bought back in the form of Unilever PLC
ordinary shares. The new share buyback is expected to commence in quarter two
of 2026. The purpose of the share buyback is to reduce the capital of Unilever
PLC.
Finance and liquidity
In 2025, the following notes matured and were repaid:
• January: €650 million 0.50% fixed rate notes
• March: $350 million 3.375% fixed rate notes and €1,000 million
1.25% fixed rate notes
• July: $500 million 3.10% fixed rate notes and €650 million
0.875% fixed rate notes
The following notes were issued:
• May: €700 million 2.75% fixed rate notes due May 2030 and
€800 million 3.375% fixed rate notes due May 2035
• September: €600 million floating rate notes due September 2027
and $150 million 4.824% fixed rate notes due September 2035
• October: €850 million 2.875% fixed rate notes due October 2032
and €800 million 3.50% fixed rate notes due October 2037
On 31 December 2025, Unilever had undrawn revolving 364-day bilateral credit
facilities in aggregate of $5,200 million and €2,600 million with a 364-day
term out.
Discontinued operations
The results of Ice Cream, for the period of ownership until the demerger on
6th December 2025, are included in discontinued operations. This is not
included in non-GAAP measures including underlying earnings per share (UEPS).
In 2025, our discontinued operations generated €7,691 million turnover, with
operating profit of €4,050 million and profit after taxation on demerger of
discontinued operations of €3,798 million. Our profit after taxation on
demerger of discontinued operations in 2025 reflected the gain on demerger.
Cash flow from discontinued operations included an operating inflow of
€0.3 billion. Investing outflow was €0.7 billion, mainly from the cash
de-recognised at the time of the demerger and capital expenditure. Financing
activities contributed a €3.0 billion inflow, primarily from the bond
issuance completed by The Magnum Ice Cream Company.
Non-GAAP measures
Certain discussions and analyses set out in this announcement include measures
which are not defined by generally accepted accounting principles (GAAP) such
as IFRS. We believe this information, along with comparable GAAP measurements,
is useful to investors because it provides a basis for measuring our operating
performance, ability to retire debt and invest in new business opportunities.
Our management uses these financial measures, along with the most directly
comparable GAAP financial measures, in evaluating our operating performance
and value creation. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information presented in
compliance with GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Unless specifically mentioned, our non-GAAP measures for 2025 and comparative
periods are presented on a continuing operations basis.
Unilever uses 'constant rate', and 'underlying' measures primarily for
internal performance analysis and targeting purposes. We present certain
items, percentages and movements, using constant exchange rates, which exclude
the impact of fluctuations in foreign currency exchange rates. We calculate
constant currency values by translating both the current and the prior period
local currency amounts using the prior year average exchange rates into euro,
except for the local currency of entities that operate in hyperinflationary
economies. These currencies are translated into euros using the prior year
closing exchange rate before the application of IAS 29. The table below shows
exchange rate movements in our key markets.
Annual average rate in 2025 Annual average rate in 2024
Brazilian real (€1 = BRL) 6.297 5.761
Chinese yuan (€1 = CNY) 8.092 7.751
Indian rupee (€1 = INR) 97.630 90.652
Indonesia rupiah (€1 = IDR) 18,481 17,177
Mexican peso (€1 = MXN) 21.710 19.589
Philippine peso (€1 = PHP) 64.488 62.055
Turkish lira (€1 = TRY) 49.277 36.671
UK pound sterling (€1 = GBP) 0.855 0.848
US dollar (€1 = US$) 1.124 1.085
Underlying sales growth (USG)
Underlying sales growth (USG) refers to the increase in turnover for the
period, excluding any change in turnover resulting from acquisitions,
disposals, changes in currency and price growth in excess of 26% in
hyperinflationary economies. Inflation of 26% per year compounded over three
years is one of the key indicators within IAS 29 to assess whether an economy
is deemed to be hyperinflationary. We believe this measure provides valuable
additional information on the underlying sales performance of the business and
is a key measure used internally. The impact of acquisitions and disposals
(A&D) is excluded from USG for a period of 12 calendar months from the
applicable closing date. Turnover from acquired brands that are launched in
countries where they were not previously sold is included in USG as such
turnover is more attributable to our existing sales and distribution network
than the acquisition itself.
The reconciliation of changes in the GAAP measure of turnover to USG is as
follows:
(unaudited) Beauty & Wellbeing Personal Care Home Care Foods Total
Fourth Quarter
Turnover (€ million)
2024 3,310 3,235 2,960 3,434 12,939
2025 3,189 3,307 2,830 3,260 12,586
Turnover growth (%) (3.7) 2.2 (4.4) (5.1) (2.7)
Effect of acquisitions (%) 0.6 4.7 - - 1.3
Effect of disposals (%) (0.1) - (0.2) (1.2) (0.4)
Effect of currency-related items (%), of which: (8.4) (7.1) (8.5) (6.1) (7.5)
Exchange rates changes (%) (8.7) (7.6) (9.1) (6.3) (7.9)
Extreme price growth in hyperinflationary markets* (%) 0.4 0.5 0.7 0.3 0.5
Underlying sales growth (%) 4.7 5.1 4.7 2.3 4.2
Full Year
Turnover (€ million)
2024 13,157 13,618 12,352 13,352 52,479
2025 12,848 13,161 11,565 12,929 50,503
Turnover growth (%) (2.3) (3.4) (6.4) (3.2) (3.8)
Effect of acquisitions (%) 0.4 1.9 - - 0.6
Effect of disposals (%) (1.0) (3.6) (1.7) (0.8) (1.8)
Effect of currency-related items (%), of which: (5.8) (6.0) (7.1) (4.7) (5.9)
Exchange rates changes (%) (6.2) (6.5) (7.7) (5.1) (6.3)
Extreme price growth in hyperinflationary markets* (%) 0.4 0.5 0.6 0.4 0.5
Underlying sales growth (%) 4.3 4.7 2.6 2.5 3.5
(unaudited) Asia Pacific Africa The Americas Europe Total
Fourth Quarter
Turnover (€ million)
2024 5,691 4,831 2,417 12,939
2025 5,497 4,707 2,382 12,586
Turnover growth (%) (3.4) (2.6) (1.5) (2.7)
Effect of acquisitions (%) 0.3 2.7 1.2 1.3
Effect of disposals (%) - (0.3) (1.7) (0.4)
Effect of currency-related items (%), of which: (9.9) (7.6) (1.0) (7.5)
Exchange rates changes (%) (10.6) (7.9) (1.0) (7.9)
Extreme price growth in hyperinflationary markets* (%) 0.7 0.3 - 0.5
Underlying sales growth (%) 6.9 3.0 0.1 4.2
Full Year
Turnover (€ million)
2024 23,448 19,605 9,426 52,479
2025 22,427 18,622 9,454 50,503
Turnover growth (%) (4.4) (5.0) 0.3 (3.8)
Effect of acquisitions (%) 0.2 0.9 0.9 0.6
Effect of disposals (%) (2.4) (1.1) (1.9) (1.8)
Effect of currency-related items (%), of which: (6.5) (7.8) (0.1) (5.9)
Exchange rates changes (%) (7.0) (8.4) (0.1) (6.3)
Extreme price growth in hyperinflationary markets* (%) 0.5 0.7 - 0.5
Underlying sales growth (%) 4.6 3.3 1.5 3.5
*Underlying price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the underlying sales growth in
the tables above, and an equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
Turnover growth is made up of distinct individual growth components namely
underlying sales, currency impact, acquisitions and disposals. Turnover growth
is arrived at by multiplying these individual components on a compounded basis
as there is a currency impact on each of the other components. Accordingly,
turnover growth is more than just the sum of the individual components.
Underlying price growth (UPG)
Underlying price growth (UPG) is part of USG and means, for the applicable
period, the increase in turnover attributable to changes in prices during the
period. UPG therefore excludes the impact to USG due to (i) the volume of
products sold; and (ii) the composition of products sold during the period. In
determining changes in price, we exclude the impact of price growth in excess
of 26% per year in hyperinflationary economies as explained in USG above.
Underlying volume growth (UVG)
Underlying volume growth (UVG) is part of USG and means, for the applicable
period, the increase in turnover in such period calculated as the sum of (i)
the increase in turnover attributable to the volume of products sold; and (ii)
the increase in turnover attributable to the composition of products sold
during such period. UVG therefore excludes any impact on USG due to changes in
prices.
Non-underlying items
Some of our non-GAAP measures are adjusted to exclude items defined as
non-underlying. Management considers non-underlying items to be significant,
unusual or non-recurring in nature and so believe that separately identifying
them helps users to better understand the financial performance of the Group
from period to period.
• Non-underlying items within operating profit are: gains or
losses on business disposals, acquisition and disposal related costs,
restructuring costs, impairments and other approved one-off items within
operating profit classified here due to their nature and frequency.
• Non-underlying items not in operating profit but within net
profit are: net monetary gain/(loss) arising from hyperinflationary economies
and significant and unusual items in net finance cost, share of profit/(loss)
of joint ventures and associates and taxation.
• Non-underlying items after tax is calculated as non-underlying
items within operating profit after tax plus non-underlying items not in
operating profit but within net profit after tax.
Consequently, within underlying operating profit we exclude the following
items:
• Restructuring costs are costs that are directly attributable to
a restructuring project. Management define a restructuring project as a
strategic, major initiative that delivers cost savings and materially change
either the scope of the business or the manner in which the business is
conducted.
• Acquisitions and disposal related costs are costs that are
directly attributable to a business acquisition or disposal project.
• Impairment of assets including goodwill, intangible assets and
property, plant and equipment.
• Gains or losses from the disposal of group companies which arise
from business disposal projects.
• Other approved one-off items are those additional matters
considered by management to be significant and outside the course of normal
operations.
The breakdown of non-underlying items is shown below:
€ million Full Year
(unaudited) 2025 2024((g))
Non-underlying items within operating profit before tax (1,047) (1,369)
Acquisition and disposal-related costs((a)) (288) (293)
Gain on disposal of group companies((b)) (36) (229)
Restructuring costs((c)) (599) (710)
Impairments((d)) (43) (134)
Other((e)) (81) (3)
Tax on non-underlying items within operating profit 7 88
Non-underlying items within operating profit after tax (1,040) (1,281)
Non-underlying items not in operating profit but within net profit before tax (34) (167)
Interest related to non-underlying items((f)) 34 35
Net monetary loss arising from hyperinflationary economies (68) (201)
Tax impact of non-underlying items not in operating profit but within net (39) 85
profit, including non-underlying tax items
Non-underlying items not in operating profit but within net profit after tax (73) (82)
Non-underlying items after tax (1,113) (1,363)
Attributable to:
Non-controlling interests (34) 22
Shareholders' equity (1,079) (1,385)
(a) 2025 includes a charge of €98 million (2024 €225 million)
relating to the revaluation of the minority interest liability of Nutrafol and
Oziva, and €91 million related to the Ice Cream separation.
(b) 2025 net loss arises from the disposals of The Vegetarian Butcher and
Kate Somervile partially offset by gain on Conimex disposal. 2024 net loss
related to the disposals of our Russian business, Elida Beauty, PureIt, and
Qinyuan.
(c) In 2024, we announced the launch of a company-wide Productivity
programme to support margin improvement through specific interventions. The
majority of the costs incurred that relate to the Productivity programme were
for redundancy and are recognised as restructuring in line with our policy.
The remaining cost comprise technology and supply chain projects.
(d) 2025 includes an impairment charge of €42 million relating to REN .
(e) Other includes a charge for the settlement of cases reached during the
year with plaintiff law firms, and an estimated amount for potential future
claims relating to litigation arising from products which are no longer
manufactured and sold by the Group.
(f) 2025 includes impact of Elida Beauty seller note settlement. 2024
impact was driven by interest related to UK tax audit of intangible income and
centralised services.
(g) 2024 comparatives have been re-presented to reflect the demerger of
the Ice Cream Business Group.
Underlying operating profit (UOP) and underlying operating margin (UOM)
Underlying operating profit and underlying operating margin mean operating
profit and operating margin before the impact of non-underlying items within
operating profit. Underlying operating profit represents our measure of
segment profit or loss as it is the primary measure used for making decisions
about allocating resources and assessing performance of the segments. The
reconciliation of operating profit to underlying operating profit is as
follows:
€ million Full Year
(unaudited) 2025 2024((a))
Operating profit 9,037 8,829
Non-underlying items within operating profit 1,047 1,369
Underlying operating profit 10,084 10,198
Turnover 50,503 52,479
Operating margin (%) 17.9 16.8
Underlying operating margin (%) 20.0 19.4
(a) 2024 comparatives have been re-presented to reflect the
demerger of the Ice Cream Business Group
Underlying effective tax rate
The underlying effective tax rate is calculated by dividing taxation excluding
the tax impact of non-underlying items by profit before tax excluding the
impact of non-underlying items and share of net (profit)/loss of joint
ventures and associates. This measure reflects the underlying tax rate in
relation to profit before tax excluding non-underlying items before tax and
share of net profit/(loss) of joint ventures and associates. Tax impact on
non-underlying items within operating profit is the sum of the tax on each
non-underlying item, based on the applicable country tax rates and tax
treatment. This is shown in the following table:
€ million Full Year
(unaudited) 2025 2024((a))
Taxation 2,481 2,332
Tax impact of:
Non-underlying items within operating profit 7 88
Non-underlying items not in operating profit but within net profit (39) 85
Taxation before tax impact of non-underlying items 2,449 2,505
Profit before taxation 8,693 8,371
Share of net profit of joint ventures and associates (245) (250)
Profit before tax excluding share of net profit of joint ventures and 8,448 8,121
associates
Non-underlying items within operating profit before tax 1,047 1,369
Non-underlying items not in operating profit but within net profit before tax 34 167
Profit before tax excluding non-underlying items before tax and share of net 9,529 9,657
profit of joint ventures and associates
Effective tax rate (%) 29.4 28.7
Underlying effective tax rate (%) 25.7 25.9
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
Underlying earnings per share
Underlying earnings per share (underlying EPS) is calculated as underlying
profit attributable to shareholders' equity divided by the diluted average
number of ordinary shares. For 2025 and 2024, the number of shares used in the
calculation has been adjusted for the impact of the share consolidation as if
it took place at the start of each period presented. In calculating underlying
profit attributable to shareholders' equity, net profit attributable to
shareholders' equity is adjusted to eliminate the post-tax impact of
non-underlying items. This measure reflects the underlying earnings for each
share unit of the Group. Refer to note 5 for reconciliation of net profit
attributable to shareholders' equity to underlying profit attributable to
shareholders' equity.
The reconciliation of net profit attributable to shareholders' equity to
underlying profit attributable to shareholders' equity is as follows:
€ million Full Year
(unaudited) 2025 2024((a))
Net profit 6,213 6,039
Non-controlling interest (531) (609)
Net profit attributable to shareholders' equity - used for basic and diluted 5,682 5,430
earnings per share
Post-tax impact of non-underlying items attributable to shareholders' equity 1,079 1,385
Underlying profit attributable to shareholders' equity - used for basic and 6,761 6,816
diluted earnings per share
Diluted average number of shares (millions of share units) 2,195 2,229
Diluted EPS (€) 2.59 2.44
Underlying EPS - diluted (€) 3.08 3.06
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
Net debt
Net debt is a measure that provides valuable additional information on the
summary presentation of the Group's net financial liabilities and is a measure
in common use elsewhere. Net debt is defined as the excess of total financial
liabilities, excluding trade payables and other current liabilities, over
cash, cash equivalents and other current financial assets, excluding trade and
other current receivables, and non-current financial asset derivatives that
relate to financial liabilities. Net debt for 2024 is not re-presented and is
based on the reported balance sheet as at 31 December 2024.
The reconciliation of total financial liabilities to net debt is as follows:
€ million Full Year
(unaudited) 2025 2024
Total financial liabilities (28,278) (32,053)
Current financial liabilities (2,582) (6,987)
Non-current financial liabilities (25,696) (25,066)
Cash and cash equivalents as per balance sheet 3,941 6,136
Cash and cash equivalents as per cash flow statement 3,870 5,950
Add: bank overdrafts deducted therein 65 180
Less: cash and cash equivalents held for sale 6 6
Other current financial assets 1,121 1,330
Non-current financial asset derivatives that relate to financial liabilities 140 68
Net debt (23,076) (24,519)
Underlying earnings before interest, taxation, depreciation and amortisation
(UEBITDA)
Underlying earnings before interest, taxation, depreciation and amortisation
means operating profit before the impact of depreciation, amortisation and
non-underlying items within operating profit. We only use UEBITDA to assess
our leverage level, which is expressed as net debt to UEBITDA. UEBITDA for
2024 is presented on a continuing results and therefore will show a different
leverage level compared to what has been previously reported. The
reconciliation of operating profit to UEBITDA is as follows:
€ million Full Year
(unaudited) 2025 2024((a))
Net profit from continuing operations 6,213 6,039
Net finance costs 503 520
Net monetary loss arising from hyperinflationary economies 68 201
Share of net profit of joint ventures and associates (245) (250)
Other loss/(income) from non-current investments and associates 17 (13)
Taxation 2,481 2,332
Operating profit 9,037 8,829
Depreciation and amortisation 1,310 1,236
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 10,347 10,065
Non-underlying items within operating profit 1,047 1,369
Underlying earnings before interest, taxes, depreciation and amortisation 11,394 11,434
(UEBITDA)
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
Free cash flow (FCF)
Within the Unilever Group, free cash flow (FCF) is defined as cash flow from
operating activities, less income taxes paid, net capital expenditure and net
interest payments. It does not represent residual cash flows entirely
available for discretionary purposes; for example, the repayment of principal
amounts borrowed is not deducted from FCF. FCF reflects an additional way of
viewing our liquidity that we believe is useful to investors because it
represents cash flows that could be used for distribution of dividends,
repayment of debt or to fund our strategic initiatives, including
acquisitions, if any.
The reconciliation of cash flow from operating activities to FCF is as
follows:
€ million Full Year
(unaudited) 2025 2024((a))
Cash flow from operating activities 10,772 10,913
Income tax paid (2,720) (2,452)
Net capital expenditure (1,465) (1,599)
Net interest paid (666) (559)
Free cash flow 5,921 6,304
Net cash flow (used in)/from investing activities (2,394) (423)
Net cash flow used in financing activities (9,884) (6,829)
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
Cash conversion
Unilever defines cash conversion as free cash flow excluding tax on disposal
as a proportion of net profit, excluding gain/loss on disposal and income from
JV, associates and non-current investments. This reflects our ability to
convert profit to cash.
€ million Full Year
(unaudited) 2025 2024((a))
Net profit 6,213 6,039
Loss/(gain) on disposal of group companies 36 229
Share of net profit of joint ventures and associates (245) (250)
Other (income)/loss from non-current investments and associates 17 (13)
Tax on gain on disposal of group companies 239 140
Net profit excluding P&L on disposals, JV, associates, NCI 6,260 6,145
Cash flow from operating activities 10,772 10,913
Free cash flow 5,921 6,304
Cash impact of tax on disposal 328 111
Free cash flow excluding cash impact of tax on disposal 6,249 6,415
Cash conversion from operating activities (%) 173 181
Cash conversion (%) 100 104
(a) 2024 comparatives have been re-presented to reflect the
demerger of the Ice Cream Business Group
Underlying return on invested capital (ROIC)
Underlying return on invested capital (ROIC) is a measure of the return
generated on capital invested by the Group. The measure provides a guard rail
for long-term value creation and encourages compounding reinvestment within
the business and discipline around acquisitions with low returns and long
payback. Underlying ROIC is calculated as underlying operating profit after
tax divided by the annual average of: goodwill, intangible assets, property,
plant and equipment, net assets held for sale, inventories, trade and other
current receivables, and trade payables and other current liabilities.
To present a comparable underlying ROIC for 2024, previously reported 2024
assets and liabilities have been re‑presented to exclude those relating to
the Ice Cream business.
€ million Full Year
(unaudited) 2025 2024((c))
Operating profit 9,037 8,829
Tax on operating profit((a)) (2,657) (2,534)
Operating profit after tax 6,380 6,295
Operating profit 9,037 8,829
Non-underlying items within operating profit 1,047 1,369
Underlying operating profit before tax 10,084 10,198
Tax on underlying operating profit((b)) (2,592) (2,645)
Underlying operating profit after tax 7,492 7,553
Goodwill 17,709 22,311
Intangible assets 17,055 18,590
Property, plant and equipment 8,992 11,669
Net assets held for sale ((d)) 93 119
Inventories 4,043 5,177
Trade and other current receivables 7,346 6,011
Trade payables and other current liabilities (16,939) (16,690)
Period-end invested capital 38,298 47,187
Adjustment to 2024 period end balance for Ice Cream demerger ((e)) - (6,481)
Adjusted period end invested capital 38,298 40,706
Average invested capital for the period ((f)) 39,502 39,559
Return on invested capital (%) 16.2 15.9
Underlying return on invested capital (%) 19.0 19.1
(a) Tax on operating profit is calculated as operating profit before tax
multiplied by the effective tax rate of 29.4% (2024: 28.7%) which is shown on
note 4.
(b) Tax on underlying operating profit is calculated as underlying operating
profit before tax multiplied by the underlying effective tax rate of 25.7%
(2024: 25.9%) which is shown on page 16.
(c) 2024 comparatives have been re-presented to reflect the demerger of
the Ice Cream Business Group
(d) 2025 excludes €80 million relating to the India Ice Cream business
which is classified as a discontinued operation
(e) The significant items adjusted are €3.6 billion of Goodwill, €2.4
billion of Property, Plant and Equipment, €0.8 billion of intangible assets
and €0.3 billion of net working capital.
(f) In order to compute the average invested capital for 2024, we have
adjusted the 2023 closing assets balance to also remove the Ice Cream assets
and liabilities.
Cautionary Statement
This announcement 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 than statements of
historical fact are, or may be deemed to be, forward-looking statements. Words
and terminology such as 'will', 'aim', 'expects', 'anticipates', 'intends',
'looks', 'believes', 'vision', 'ambition', 'target', 'goal', 'plan',
'potential', 'work towards', 'may', 'milestone', 'objectives', 'outlook',
'probably', 'project', 'risk', 'continue', 'should', 'would be', 'seeks', or
the negative of these terms and other similar expressions of future
performance, results, actions or events, and their negatives, are intended to
identify such forward-looking statements. Forward-looking statements also
include, but are not limited to, statements and information regarding
Unilever's emissions reduction and other sustainability-related targets and
other climate and sustainability matters (including actions, potential impacts
and risks and opportunities associated therewith). Forward-looking statements
can be made in writing but also may be made verbally by directors, officers
and employees of the Unilever Group (the "Group") (including during management
presentations) in connection with this announcement. These forward-looking
statements are based upon current expectations and assumptions regarding
anticipated developments and other factors affecting the Group. They are not
historical facts, nor are they guarantees of future performance or outcomes.
All forward-looking statements contained in this announcement are expressly
qualified in their entirety by the cautionary statements contained in this
section. Readers should not place undue reliance on forward-looking
statements. Because these forward-looking statements involve known and unknown
risks and uncertainties, a number of which may be beyond the Group's control,
there are important factors that could cause actual results to differ
materially from those expressed or implied by these forward-looking
statements. Among other risks and uncertainties, the material or principal
factors which could cause actual results to differ materially from the
forward-looking statements expressed in this announcement are: Unilever's
global brands not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its portfolio
management; the effect of climate change on Unilever's business; Unilever's
ability to find sustainable solutions to its plastic packaging; significant
changes or deterioration in customer relationships; the recruitment and
retention of talented employees; disruptions in Unilever's supply chain and
distribution; increases or volatility in the cost of raw materials and
commodities; the production of safe and high-quality products; secure and
reliable IT infrastructure; execution of acquisitions, divestitures and
business transformation projects; economic, social and political risks and
natural disasters; financial risks; failure to meet high and ethical
standards; and managing regulatory, tax and legal matters and practices with
regard to the interpretation and application thereof and emerging and
developing ESG reporting standards including differences in implementation of
climate and sustainability policies in the regions where the Group operates.
The forward-looking statements are based on our beliefs, assumptions and
expectations of our future performance, taking into account all information
currently available to us. Forward-looking statements are not predictions of
future events. These beliefs, assumptions and expectations can change as a
result of many possible events or factors, not all of which are known to us.
If a change occurs, our business, financial condition, liquidity and results
of operations may vary materially from those expressed in our forward-looking
statements. The forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or regulation, the
Group expressly disclaims any intention, obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in the Group's expectations with regard thereto
or any change in events, conditions or circumstances on which any such
statement is based. New risks and uncertainties arise over time, and it is not
possible for us to predict those events or how they may affect us. In
addition, we cannot assess the impact of each factor on our business or the
extent to which any factor, or combination of factors, may cause actual
events, to differ materially from those contained in any forward-looking
statements. Further details of potential risks and uncertainties affecting the
Group are described in the Group's filings with the London Stock Exchange,
Euronext Amsterdam and the US Securities and Exchange Commission, including in
the Annual Report on Form 20-F 2024 and the Unilever Annual Report and
Accounts 2024.
Enquiries
UK +44 77 4249 0136 press-office.london@unilever.com investor.relations@unilever.com
or +44 77 7999 9683 jonathan.sibun@teneo.com
NL +31 63 029 6394 willemijn.storimans@unilever.com
or +31 61 500 8293 fleur-van.bruggen@unilever.com
After the conference call on 12 February 2026 at 8:00 AM (UK time), the
webcast of the presentation will be available at
www.unilever.com/investors/results-events/.
(https://www.unilever.com/investors/results-events/)
This Results Presentation has been submitted to the FCA National Storage
Mechanism and is available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Consolidated income statement
€ million Full Year
(unaudited) 2025 2024((a)) Change
Turnover 50,503 52,479 (3.8)%
Operating profit 9,037 8,829 2.4%
Net finance costs (503) (520)
Pensions and similar obligations 123 83
Finance income 398 391
Finance costs (1,024) (994)
Net monetary loss arising from hyperinflationary economies (68) (201)
Share of net profit of joint ventures and associates 245 250
Other income/(loss) from non-current investments and associates (17) 13
Profit before taxation from continuing operations 8,693 8,371 3.9%
Taxation (2,481) (2,332)
Net profit from continuing operations 6,213 6,039 2.9%
Profit after taxation from discontinued operations 425 330
Gain on disposal of discontinued operation 3,373 -
Net profit from discontinued operations 3,798 330
Total net profit 10,011 6,369
Attributable to:
Non-controlling interests 542 625
Shareholders' equity 9,469 5,744 64.9%
Total profit attributable to shareholders' equity arises from:
Continuing operations 5,682 5,430
Discontinued operations 3,787 314
Total profit attributable to non-controlling interests arises from:
Continuing operations 531 609
Discontinued operations 11 16
Earnings per share
Basic earnings per share (euros) 4.33 2.59 67.0 %
Basic earnings per share (€) from continuing operations 2.60 2.45 6.1 %
Basic earnings per share (€) from discontinued operations 1.73 0.14 1124.3 %
Diluted earnings per share (euros) 4.32 2.58 67.6 %
Diluted earnings per share (€) from continuing operations 2.59 2.44 6.2 %
Diluted earnings per share (€) from discontinued operations 1.73 0.14 1125.1 %
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
Consolidated statement of comprehensive income
€ million Full Year
(unaudited) 2025 2024((a))
Net profit 10,011 6,369
Other comprehensive income from continuing operations
Items that will not be reclassified to profit or loss, net of tax:
Gains/(losses) on equity instruments measured at fair value through other (14) 60
comprehensive income
Remeasurement of defined benefit pension plans 137 226
Items that may be reclassified subsequently to profit or loss, net of tax:
Gains/(losses) on cash flow hedges (111) 122
Currency retranslation gains/(losses) (2,239) 1,113
Total comprehensive income from continuing operations (2,227) 1,521
Other comprehensive income from discontinued operations 508 402
Total comprehensive income 8,292 8,292
Attributable to:
Non-controlling interests 187 712
Shareholders' equity 8,105 7,580
(a) 2024 comparatives have been re-presented to reflect the
demerger of the Ice Cream Business Group
Consolidated statement of changes in equity
(unaudited)
€ million Called Share Unification Other Retained Total Non- Total
up share premium reserve reserves profit controlling equity
capital account interest
1 January 2024 88 52,844 (73,364) (8,518) 47,052 18,102 2,662 20,764
Profit or loss for the period - - - - 5,744 5,744 625 6,369
Other comprehensive income, net of tax:
Gains/(losses) on:
Equity instruments gains/(losses) - - - 60 - 60 - 60
Cash flow hedges gains/(losses) - - - 210 - 210 - 210
Remeasurements of defined benefit pension plans - - - - 269 269 (5) 264
Currency retranslation gains/(losses)((a)) - - - 406 891 1,297 92 1,389
Total comprehensive income - - - 676 6,904 7,580 712 8,292
Dividends on ordinary capital - - - - (4,320) (4,320) - (4,320)
Repurchase of shares((d)) - - - (1,508) - (1,508) - (1,508)
Movements in treasury shares((e)) - - - 25 (120) (95) - (95)
Share-based payment credit((f)) - - - - 324 324 - 324
Dividends paid to non-controlling interests - - - - - - (712) (712)
Hedging loss/(gain) transferred to non-financial assets - - - (54) - (54) - (54)
Other movements in equity - - - 80 (119) (39) (97) (136)
31 December 2024 88 52,844 (73,364) (9,299) 49,721 19,990 2,565 22,555
Profit or loss for the period - - - - 9,469 9,469 542 10,011
Other comprehensive income, net of tax:
Gains/(losses) on:
Equity instruments (losses)/gains - - - (14) - (14) - (14)
Cash flow hedges (losses)gains - - - (196) - (196) (2) (198)
Remeasurements of defined benefit pension plans - - - - 180 180 (4) 176
Currency retranslation (losses)/gains((a)) - - - (1,258) (76) (1,334) (349) (1,683)
Total comprehensive income - - - (1,468) 9,573 8,105 187 8,292
Dividends on ordinary capital - - - - (4,453) (4,453) - (4,453)
Non-cash dividend to shareholders((b)) - - - - (6,752) (6,752) - (6,752)
Cancellation of treasury shares((c)) (3) - - 3,770 (3,767) - - -
Repurchase of shares((d)) - - - (1,510) - (1,510) - (1,510)
Movements in treasury shares((e)) - - - 1 (152) (151) - (151)
Share-based payment credit((f)) - - - - 284 284 - 284
Dividends paid to non-controlling interests((g)) - - - - - - (728) (728)
Hedging loss/(gain) transferred to non-financial assets - - - (58) - (58) 1 (57)
Other movements in equity((h)) - - - 300 (225) 75 32 107
31 December 2025 85 52,844 (73,364) (8,264) 44,229 15,530 2,057 17,587
(a) Includes a hyperinflation adjustment of €17 million in relation to
Argentina and Turkey (2024: €880 million primarily reflects the effect of
significant inflationary pressures, particularly in Argentina, compared with
2025).
(b) A non‑cash dividend was distributed to shareholders in connection with
the Ice Cream demerger. The distribution was settled through the transfer of
the Company's equity interest in the demerged entity, measured at fair value
and recognised directly in equity with no associated cash outflow.
(c) During 2025, 13,288,138 PLC ordinary shares held as treasury shares
were cancelled before share consolidation and 51,625,153 cancelled after share
consolidation. The amount paid to repurchase these shares was initially
recognised in other reserves and is transferred to retained profit on
cancellation.
(d) Repurchase of shares reflects the cost of acquiring ordinary shares as
part of the share buyback programmes announced on 8 February 2024 and 13
February 2025.
(e) Includes purchases and sales of treasury shares, other than the share
buyback programme and the transfer from treasury shares to retained profit of
share-settled schemes arising from prior years and differences between
purchase and grant price of share awards.
(f) The share-based payment credit relates to the non-cash charge recorded
against operating profit in respect of the fair value of share options and
awards granted to employees.
(g) Includes a non-cash dividend of €199 million by Hindustan Unilever
Limited to its minority shareholders.
(h) Includes the impact on the minority liability and non-controlling
interest following the acquisition of Dr. Squatch and Minimalist, and the
step-up acquisitions of Nutrafol, Welly and Equilibra.
Consolidated balance sheet
(unaudited)
€ million As at 31 December 2025 As at 31 December 2024
Non-current assets
Goodwill 17,709 22,311
Intangible assets 17,055 18,590
Property, plant and equipment 8,992 11,669
Pension asset for funded schemes in surplus 4,462 4,164
Deferred tax assets 1,146 1,280
Financial assets 3,065 1,571
Other non-current assets 976 971
53,405 60,556
Current assets
Inventories 4,043 5,177
Trade and other current receivables 7,346 6,011
Current tax assets 329 373
Cash and cash equivalents 3,941 6,136
Other financial assets 1,121 1,330
Assets held for sale 286 167
17,066 19,194
Total assets 70,471 79,750
Current liabilities
Financial liabilities 2,582 6,987
Trade payables and other current liabilities 16,939 16,690
Current tax liabilities 1,439 678
Provisions 589 831
Liabilities held for sale 113 48
21,662 25,234
Non-current liabilities
Financial liabilities 25,696 25,066
Non-current tax liabilities 303 585
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit 100 173
Unfunded schemes 844 1,021
Provisions 539 571
Deferred tax liabilities 3,603 4,342
Other non-current liabilities 137 203
31,222 31,961
Total liabilities 52,884 57,195
Equity
Shareholders' equity 15,530 19,990
Non-controlling interests 2,057 2,565
Total equity 17,587 22,555
Total liabilities and equity 70,471 79,750
Consolidated cash flow statement
(unaudited) Full Year
€ million 2025 2024((a))
Net profit from continuing operations 6,213 6,039
Taxation 2,481 2,332
Share of net profit of joint ventures/associates and other (income)/loss from (228) (263)
non-current investments and associates
Net monetary loss arising from hyperinflationary economies 68 201
Net finance costs 503 520
Operating profit from continuing operations 9,037 8,829
Depreciation, amortisation and impairment 1,353 1,370
Changes in working capital 116 (188)
Inventories (281) (190)
Trade and other receivables ((b)) (2,620) (211)
Trade payables and other liabilities ((b)) 3,017 213
Pensions and similar obligations less payments (74) (54)
Provisions less payments (130) 289
Elimination of loss/(profits) on disposals 58 259
Non-cash charge for share-based compensation 255 292
Other adjustments 157 116
Cash flow from continuing operating activities 10,772 10,913
Income tax paid on continuing operations (2,720) (2,452)
Net cash flow from continuing operating activities 8,052 8,461
Cash flow from operations attributable to discontinued operations 475 1,231
Income tax paid from discontinued operation (177) (173)
Net cash flow from discontinued operating activities 298 1,058
Total cash flows from operating activities 8,350 9,519
Interest received 352 370
Purchase of intangible assets (174) (233)
Purchase of property, plant and equipment (1,417) (1,381)
Disposal of property, plant and equipment 126 15
Acquisition of businesses and investments in joint ventures and associates (1,674) (734)
Disposal of businesses, joint ventures and associates 107 910
Acquisition of other non-current investments (111) (166)
Disposal of other non-current investments 239 59
Dividends from joint ventures, associates and other non-current investments 243 261
Sale/(purchase) of financial assets (85) 476
Net cash flow used in continuing investing activities (2,394) (423)
Net cash investing cash flows attributable to discontinued operations (724) (202)
Total net cash (outflow)/inflow from investing activities (3,118) (625)
Dividends paid on ordinary share capital (4,453) (4,319)
Interest paid (1,018) (929)
Net change in short-term borrowings (2,228) 575
Additional financial liabilities 4,278 4,234
Repayment of financial liabilities (3,547) (3,846)
Capital element of lease rental payments (301) (342)
Repurchase of shares (1,510) (1,508)
Other financing activities ((c)) (1,105) (694)
Net cash flow used in continuing financing activities (9,884) (6,829)
Net cash flow used in discontinued financing activities 3,070 (112)
Total net cash flow used in financing activities (6,814) (6,941)
Net increase/(decrease) in cash and cash equivalents (1,582) 1,953
Cash and cash equivalents at the beginning of the period 5,950 4,045
Effect of foreign exchange rate changes (498) (48)
Cash and cash equivalents at the end of the period 3,870 5,950
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
(b) Net working capital includes the gross‑up impact in receivables and
payables arising due to the transitional service arrangement between Unilever
and The Magnum Ice Cream Company
(c) Comprises of minority dividend payment, and payments made relating to step
up acquisitions
Notes to the condensed consolidated financial statements
(unaudited)
1. Accounting information and policies
Except as set out below the accounting policies and methods of computation are
consistent with the year ended 31 December 2024. In conformity with the
requirements of the Companies Act 2006, the condensed consolidated preliminary
financial statements have been prepared based on the International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standard
Board (IASB) and UK-adopted international accounting standards.
The condensed consolidated financial statements are shown at current exchange
rates, and percentage year-on-year changes are shown to facilitate comparison.
The consolidated income statement on page 22, the consolidated statement of
comprehensive income on page 23, the consolidated statement of changes in
equity on page 24 and the consolidated cash flow statement on page 28 are
translated at exchange rates current in each period. The balance sheet on page
25 is translated at period-end rates of exchange.
The condensed consolidated financial statements attached do not constitute the
full financial statements within the meaning of Section 434 of the UK
Companies Act 2006, which will be finalised and delivered to the Registrar of
Companies in due course. Full accounts for Unilever for the year ended 31
December 2024 have been delivered to the Registrar of Companies; the auditors'
reports on these accounts were unqualified, did not include a reference to any
matters by way of emphasis and did not contain a statement under Section 498
(2) or Section 498 (3) of the UK Companies Act 2006.
Significant accounting policies impacting the basis of preparation of the
condensed consolidated financial statements
Assets and liabilities held for sale and discontinued operations
A disposal group is classified as held for sale or distribution when its
carrying amount is expected to be recovered principally through a sale or
distribution to shareholders rather than through continuing use. A
discontinued operation is a component of the Group that has been disposed of
or is classified as held for sale or distribution and represents a separate
major line of business. In accordance with IFRS 5, the results of
discontinued operations are presented separately in the consolidated income
statement, consolidated statement of comprehensive income, consolidated
statement of cash flows and related notes. Comparative information is
re-presented to exclude the results of discontinued operations.
The Ice Cream Business Group met the criteria to be classified as held for
distribution in December 2025, following the Board's formal approval of the
demerger. As a former reportable segment and major line of business, all Ice
Cream activities have been treated as discontinued operations in both current
and comparative periods. Further details and a breakdown of discontinued
operations are provided in Note 6.
Non‑cash distribution to owners
The demerger of the Ice Cream Business Group was executed through a
distribution of shares in The Magnum Ice Cream Company (TMICC) to Unilever
shareholders on 6 December 2025. A liability for the non‑cash distribution
was recognised when the distribution was authorised and no longer at the
Group's discretion, measured at the fair value of the assets to be distributed
at that date. The distribution was settled on completion of the demerger, at
which point the disposal group was derecognised.
Judgement was required in determining the fair value of the Ice Cream Business
Group at the distribution date for the purpose of recognising the non‑cash
dividend in accordance with IFRIC 17 Distributions of Non‑cash Assets to
Owners. Management determined fair value with reference to the TMICC share
price over a 5-day period following listing. The resulting non‑cash gain is
recognised within profit or loss, within the result from discontinued
operations.
Accounting developments adopted by the Group
All new standards or amendments issued by the IASB and UK Endorsement Board
that were effective by 1 January 2025, were either not applicable or not
material to the Group.
Future accounting developments not yet effective
The Group has commenced its assessment of IFRS 18 Presentation and Disclosure
in Financial Statements (effective 1 January 2027), with the main impacts
expected on the presentation of the consolidated income statement and the
disclosure of Management Performance Measures. The standard will be applied
from its mandatory effective date of 1 January 2027. Final impact assessment
and transition activities will take place during 2026.
(unaudited)
2. Segment information - Business Groups
Fourth Quarter Beauty & Wellbeing Personal Care Home Care Foods Total
Turnover (€ million)
2024 3,310 3,235 2,960 3,434 12,939
2025 3,189 3,307 2,830 3,260 12,586
Change (%) (3.7) 2.2 (4.4) (5.1) (2.7)
Full Year Beauty & Wellbeing Personal Care Home Care Foods Total
Turnover (€ million)
2024 13,157 13,618 12,352 13,352 52,479
2025 12,848 13,161 11,565 12,929 50,503
Change (%) (2.3) (3.4) (6.4) (3.2) (3.8)
Operating profit (€ million)
2024 1,970 2,739 1,521 2,599 8,829
2025 2,077 2,700 1,512 2,748 9,037
Underlying operating profit (€ million)
2024 2,552 3,014 1,785 2,847 10,198
2025 2,471 2,973 1,718 2,922 10,084
Underlying operating profit represents our measure of segment profit or loss
as it is the primary measure used for the purpose of making decisions about
allocating resources and assessing performance of segments. Underlying
operating margin is calculated as underlying operating profit divided by
turnover.
3. Segment information - Geographical area
Fourth Quarter Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2024 5,691 4,831 2,417 12,939
2025 5,497 4,707 2,382 12,586
Change (%) (3.4) (2.6) (1.5) (2.7)
Full Year Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2024 23,448 19,605 9,426 52,479
2025 22,42 18,622 9,454 50,503
Change (%) (4.4) (5.0) 0.3 (3.8)
(unaudited)
4. Taxation
The effective tax rate for 2025 is 29.4% compared with 28.7% in 2024. This
includes the impact of the separation of the Ice Cream business in 2025.
5. Earnings per share
The earnings per share calculations are based on the average number of share
units representing the ordinary shares of PLC in issue during the period, less
the average number of shares held as treasury shares. For 2025 and 2024, the
number of shares used in the calculation has been adjusted for the impact of
the share consolidation as if it took place at the start of each period
presented.
In calculating diluted earnings per share, a number of adjustments are made to
the number of shares, principally the exercise of share plans by employees.
Earnings per share for total operations for the twelve months were calculated
as follows:
Full Year
2025 2024((a))
EPS - Basic
Net profit attributable to shareholders' equity (€ million) 9,469 5,744
Average number of shares (millions of share units) 2,184.0 2,215.6
EPS - basic (€) 4.33 2.59
EPS - Basic from continuing operations
Net profit from continuing operations attributable to shareholders' equity 5,682 5,430
(€ million)
EPS - Basic from continuing operations (€) 2.60 2.45
EPS - Basic from discontinued operations
Net profit from discontinued operations attributable to shareholders' equity 3,787 314
(€ million)
EPS - Basic from discontinued operations (€) 1.73 0.14
EPS - Diluted
Net profit attributable to shareholders' equity (€ million) 9,469 5,744
Adjusted average number of shares (millions of share units) 2,195.3 2,228.5
EPS - diluted (€) 4.32 2.58
EPS - Diluted from continuing operations
Net profit from continuing operations attributable to shareholders' equity 5,682 5,430
(€ million)
EPS - Diluted from continuing operations (€) 2.59 2.44
EPS - Diluted from discontinued operations
Net profit from discontinued operations attributable to shareholders' equity 3,787 314
(€ million)
EPS - Diluted from discontinued operations (€) 1.73 0.14
(a) 2024 comparatives have been re-presented to reflect the demerger of the
Ice Cream Business Group
During the period the following movements in shares have taken place:
Millions
Number of shares at 31 December 2024 (net of treasury shares) 2,475.6
Shares repurchased under the share buyback programme (27.8)
Net movements in shares under incentive schemes 4.1
Impact of share consolidation (272.4)
Number of shares at 31 December 2025 (net of treasury shares) 2,179.5
(unaudited)
6. Demerger of the Ice Cream Business
On 6 December, Unilever completed the separation of its Ice Cream business,
now known as The Magnum Ice Cream Company N.V. ('TMICC') an independent listed
company incorporated and headquartered in the Netherlands. The separation was
effected through a demerger of 80.15% of Unilever's holding in TMICC to
Unilever shareholders. Unilever retained a 19.85% stake in TMICC, which has
been recognised as an equity investment. TMICC shares were admitted to trading
on Euronext Amsterdam, the London Stock Exchange and the New York Stock
Exchange on 8 December 2025.
Under IFRIC 17 'Distributions of Non-cash Assets to Owners', a liability and
an equity distribution are measured at the fair value of the assets to be
distributed when the dividend is appropriately authorised and no longer at the
entity's discretion. The liability, dividend distribution and associated gain
on demerger were recognised in December 2025 when the demerger distribution
was authorised.
The fair value of the Ice Cream business was €8.4 billion. This was measured
by reference to the daily closing quoted average TMICC share price over a
five-day period post listing, which was considered representative of the fair
value at the distribution date. A gain on distribution of the Ice Cream
business was recorded in the Income Statement in 2025.
The gain included €1.7 billion relating to the measurement of the retained
stake to fair value using the same methodology. This gain is presented as part
of discontinued operations and is exempt from tax. Any future gains or losses
on the retained stake will be recognised in other comprehensive income.
The carrying value of the net assets of the Ice Cream business in the
consolidated financial statements was €4.0 billion.
In addition, there was a reclassification of the Group's share of cumulative
exchange differences arising on translation of the foreign currency net assets
from reserves to the Income Statement of €1.0 billion. The total gain on
demerger of the Ice Cream business was €3.4 billion.
Total gain on demerger calculation
€ million
2025
Fair value of the Ice Cream business distributed (80.15%) 6,752
Fair value of the retained ownership in TMICC (19.85%) 1,672
Total fair value 8,424
Carrying amount of the net assets and liabilities distributed/de-recognised,
comprised of:
Goodwill (3,322)
Intangible Assets (729)
Property, Plant and Equipment (2,234)
Pension assets (80)
Inventories (925)
Net deferred tax assets (302)
Other non-current assets (10)
Trade and other current receivables (1,960)
Cash and cash equivalents (531)
Current tax assets (43)
Trade payables and other current liabilities 2,797
Financial liabilities 3,179
Pension liabilities 86
Provisions 59
Total carrying amount of net assets de-recognised (4,015)
Gain on demerger before exchange movements 4,409
Loss on recycling of currency retranslation on disposal (1,036)
Total gain on the demerger after tax 3,373
Financial information relating to the operations of Ice Cream is set out below
and includes financial information up until the date of the demerger. We have
reported everything from Turnover to Operating profit in line with what was
previously disclosed for the Ice Cream Business Group as discontinued
operations for the financial year 2023 and 2024. Below operating profit some
allocations have been made to income and costs not historically reported as
part of our segment information, where costs are shared by the Ice Cream
Business Group. We have recognised the India Ice Cream business as part of
discontinued operations and recognised the related assets and liabilities as
held for sale in the balance sheet, following an agreement to sell this
business to The Magnum Ice Cream Company in the first half of 2026.
Unilever will continue to provide services (including IT infrastructure,
marketing, and co-packing services), supply materials and continue to invoice
and collect cash on behalf of The Magnum Ice Cream Company under a
Transitional Services Agreement (TSA). The management fee for these services
is recognised within operating profit. The TSA will continue for a maximum
period of two years from the demerger of the Ice Cream business.
This financial information may differ both in purpose and basis of preparation
from the Historical Financial Information and the Interim Financial
Information included in the The Magnum Ice Cream Company's prospectus and from
that which may be published by The Magnum Ice Cream Company. As a result,
whilst the two sets of financial information may be similar, they may not be
the same because of certain differences in accounting and disclosure under
IFRS, including differences in perimeter.
The total results from discontinued operations are as follows (2025 results
are for the year to date until 6 December):
Total results from discontinued operations (Ice Cream) € million € million
2025 2024
Turnover 7,691 8,282
Operating profit 677 571
Profit before tax from discontinued operations 613 498
Taxation (188) (168)
Profit after taxation from discontinued operations 425 330
Total gain on demerger after tax 3,373 -
Profit after taxation on demerger of discontinued operations 3,798 330
Attributable to:
Non-controlling interests 11 16
Shareholders' equity 3,787 314
Earnings per share from discontinued operations 1.73 0.14
Diluted earnings per share from discontinued operations 1.73 0.14
7. Acquisitions and disposals
In 2025, the Group completed the business acquisitions and disposals as listed
below.
Deal completion date Acquired/disposed business
1 April 2025 Acquired 100% of Wild, a U.K. based company known for its natural, refillable
deodorants,
lip balms, body washes, and handwashes.
1 April 2025 Sold Conimex brand to Paulig Group.
1 April 2025 Acquired the remaining 20% of Nutraceutical Wellness, Inc. (Nutrafol),
bringing the Group's
ownership to 100%.
21 April 2025 HUL acquired 90.5% of Minimalist, an India based premium actives-led beauty
brand.
2 September 2025 Acquired 98.7% of Dr. Squatch, a U.S. based brand specialized in natural
personal care products.
On 2 September 2025, Unilever acquired 98.7% of the shares of Dr. Squatch, a
U.S. based company specialised in natural personal care products. This
complementary acquisition marks another step in expanding Unilever's portfolio
towards premium and high growth spaces. The total consideration paid was
€1,243 million.
The provisional fair value of net assets recognized on the balance sheet is
€614 million. All balances are currently provisional pending the completion
of the asset valuation review. The main asset acquired was the brand
intangible valued using an income approach model by estimating future cash
flows generated by the brand and discounting them to present value using rates
in line with a market participant expectation. The key assumptions in the
brand valuation are revenue growth and discount rates. A deferred tax
liability related to the brand intangible estimated at €170 million was also
recognised.
As part of the acquisition, goodwill of €637 million was recognized and is
not deductible for tax purposes.
Acquisitions
The total consideration for acquisitions in 2025 is €1,734 million (2024:
€616 million for acquisitions completed during that year).
Effect on consolidated income statement
If the acquisition deals completed in 2025 had all taken place at the
beginning of the year, Group turnover would have been €50,861 million, and
Group operating profit would have been €9,047 million.
Effect on consolidated balance sheet
The following table summarises the consideration and net assets acquired in
2025. The fair values currently used for opening balances are provisional.
These balances remain provisional due to there being outstanding relevant
information in regard to facts and circumstances that existed as of the
acquisition date and/or where valuation work is still ongoing.
€ million Total 2025
Intangible assets 1,109
Other non-current assets 67
Trade and other receivables 66
Other current assets((a)) 134
Non-current liabilities((b)) (311)
Current liabilities (85)
Net assets acquired 980
Non-controlling interest (30)
Goodwill((c)) 784
Total consideration 1,734
of which:
Cash consideration paid 1,687
Deferred consideration 47
(a) Other current assets include inventories of €103 million and cash
and cash equivalents of €27 million.
(b) Non-current liabilities include deferred tax of €290 million.
(c) Goodwill not deductible for tax purposes.
Disposals
The total consideration for disposals in 2025 is €93 million (2024: €1,396
million for disposals completed during that year). The following table sets
out the effect of the disposals in 2025 and comparative year on the
consolidated balance sheet. The results of disposed businesses are included in
the consolidated financial statements up until their date of disposal.
€ million 2025 2024
Goodwill and intangible assets((a)) 71 1,107
Other non-current assets 27 218
Current assets 8 700
Liabilities (1) (683)
Net assets sold 105 1,342
Loss on recycling of currency retranslation on disposal 24 545
Non-controlling interest - (85)
Profit/(loss) on sale attributable to Unilever (36) (406)
Consideration 93 1,396
Of which:
Cash 93 1,299
Non-cash items and deferred consideration - 97
(a) 2025 includes intangibles of €56 million relating to the disposals
of The Vegetarian Butcher, Kate Somerville and Conimex businesses.
(unaudited)
8. Financial instruments
The Group's Treasury function aims to protect the Group's financial
investments, while maximising returns. The fair value of financial assets is
the same as the carrying amount for 2025 and 2024. The Group's cash resources
and
other financial assets are shown below.
31 December 2025 31 December 2024
€ million Current Non-current Total Current Non-current Total
Cash and cash equivalents
Cash at bank and in hand 2,490 - 2,490 3,241 - 3,241
Short-term deposits((a)) 1,066 - 1,066 2,436 - 2,436
Other cash equivalents((b)) 385 - 385 459 - 459
3,941 - 3,941 6,136 - 6,136
Other financial assets
Financial assets at amortised cost((c)) 541 368 909 736 526 1,262
Financial assets at fair value through other comprehensive income((d)) - 2,216 2,216 - 600 600
Financial assets at fair value through profit or loss:
Derivatives 50 140 190 149 68 217
Other((e)) 530 341 871 445 377 822
1,121 3,065 4,186 1,330 1,571 2,901
Total financial assets((f)) 5,062 3,065 8,127 7,466 1,571 9,037
(a) Short-term deposits typically have a maturity of up to 3 months.
(b) Other cash equivalents include investments in overnight funds and
marketable securities.
(c) Current financial assets at amortised cost include short term deposits
with banks with maturities longer than three months excluding deposits which
are part of a recognised cash management process, fixed income securities and
loans to joint venture entities. Non-current financial assets at amortised
cost include judicial deposits of €175 million (2024: €196 million).
(d) Included within non-current financial assets at fair value through other
comprehensive income are equity investments. This includes an amount of
€1,655 million related to Group's retained investment in TMICC, recognised
following the demerger of Ice cream business during the year.
(e) Other financial assets at fair value through profit or loss include
money market funds, marketable securities, other capital market instruments
and investments in financial institutions.
(f) Financial assets exclude trade and other current receivables.
The Group is exposed to the risks of changes in fair value of its financial
assets and liabilities. The following tables summarise the fair values and
carrying amounts of financial instruments and the fair value calculations by
category.
Fair value Carrying amount
€ million As at 31 December 2025 As at 31 December 2024 As at 31 December 2025 As at 31 December 2024
Financial assets
Cash and cash equivalents 3,941 6,136 3,941 6,136
Financial assets at amortised cost 909 1,262 909 1,262
Financial assets at fair value through other comprehensive income 2,216 600 2,216 600
Financial assets at fair value through profit and loss:
Derivatives 190 217 190 217
Other 871 822 871 822
8,127 9,037 8,127 9,037
Financial liabilities
Bank loans and overdrafts (233) (521) (233) (521)
Bonds and other loans (25,655) (28,037) (26,038) (28,648)
Lease liabilities (1,326) (1,486) (1,326) (1,486)
Derivatives (452) (594) (452) (594)
Other financial liabilities (229) (804) (229) (804)
(27,895) (31,442) (28,278) (32,053)
For assets and liabilities which are carried at fair value, the classification
of fair value calculations by category is summarised below:
As at 31 December 2025 As at 31 December 2024
€ million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets at fair value
Financial assets at fair value through other 1,663 4 549 10 4 586
comprehensive income
Financial assets at fair value through profit or loss:
Derivatives((a)) - 210 - - 420 -
Other 530 - 341 445 - 377
Liabilities at fair value
Derivatives((b)) - (503) - - (650) -
Contingent consideration - - (46) - - (1)
(a) Includes €20 million (2024: €203 million) derivatives, reported
within trade receivables, that hedge trading activities.
(b) Includes €(51) million (2024: €(56) million) derivatives, reported
within trade creditors, that hedge trading activities.
There were no significant changes in classification of fair value of financial
assets and financial liabilities since 31 December 2024. There were also no
significant movements between the fair value hierarchy classifications since
31 December 2024.
The fair value of trade receivables and payables is considered to be equal to
the carrying amount of these items due to their short-term nature. The fair
value of financial assets and financial liabilities (excluding listed bonds)
is considered to be same as the carrying amount for 2025 and 2024.
Calculation of fair values
The fair values of the financial assets and liabilities are defined as the
price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. Methods and assumptions used to estimate
the fair values are consistent with those used in the year ended 31 December
2024.
(unaudited)
9. Dividends
The Board has declared a quarterly interim dividend for Q4 2025 of €0.4664
per Unilever PLC ordinary share.
The following amounts will be paid in respect of this quarterly interim
dividend on the relevant payment date:
Per Unilever PLC ordinary share (traded on the London Stock Exchange): £0.4052
Per Unilever PLC ordinary share (traded on Euronext in Amsterdam): €0.4664
Per Unilever PLC American Depositary Receipt: US$0.5547
The pound sterling and US dollar amounts above have been determined using the
applicable exchange rates issued by WM/Reuters on 11 February 2026.
US dollar cheques for the quarterly interim dividend will be mailed on
10 April 2026 to holders of record at the close of business on 27 February
2026.
The quarterly dividend calendar for Q4 2025 and the remainder of 2026 will be
as follows:
Announcement Ex-dividend Date for Ordinary Shares Ex-dividend Date for ADRs Record Date Last Date for DRIP Election Payment Date
Date
Q4 2025 Dividend 12 February 2026 26 February 2026 27 February 2026 27 February 2026 18 March 2026 10 April 2026
Q1 2026 Dividend 30 April 2026 14 May 2026 15 May 2026 15 May 2026 05 June 2026 26 June 2026
Q2 2026 Dividend 28 July 2026 06 August 2026 07 August 2026 07 August 2026 27 August 2026 18 September 2026
Q3 2026 Dividend 28 October 2026 12 November 2026 13 November 2026 13 November 2026 27 November 2026 18 December 2026
10. Events after the balance sheet date
There are no material post balance sheet events other than those mentioned
elsewhere in this report.
All figures are presented on continuing operations basis. For Unilever this
comprises of four Business Groups: Beauty & Wellbeing, Personal Care, Home
Care and Foods. Comparative figures have been re-presented to reflect the
demerger of the Ice Cream Business Group.
USG, UVG, UPG, UOP, UOM, underlying EPS, underlying effective tax rate, FCF,
cash conversion, net debt, UEBITDA and underlying ROIC are non-GAAP measures.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FFFIFFSILLIR
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Unilever
See all newsREG - Unilever PLC - Portfolio Update
AnnouncementREG - Unilever PLC - Total Voting Rights
AnnouncementREG - Unilever PLC - Group Company Secretary Change
AnnouncementREG - Unilever PLC - Director/PDMR Shareholding
AnnouncementREG - Unilever PLC - Director/PDMR Shareholding
Announcement