Unilever (ULVR LN) Q4 2025 (EUR): Revenue 12.6bln (exp. 12.47bln), Underlying Sales +4.2% (exp. +3.97%); New EUR 1.5bln share buyback announced
Importance
Level 1
- Underlying sales growth (USG) 3.5%, with 1.5% volume growth; stronger fourth quarter USG of 4.2%, with 2.1% volume.
- Turnover EUR 50.5bln, 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.EUR 670mln savings by end of 2025.
- 100% cash conversion with FCF of EUR 5.9bln; down EUR 0.4bln primarily due to Ice Cream demerger costs.
- Quarterly dividend raised 3% vs third quarter 2025.
- New EUR 1.5bln share buyback announced.
- Further portfolio transformation; Ice Cream demerged and 10 transactions closed or announced since start of 2025.
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