Unilever(UK)(US:UL) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-24 13:39Core Insights - Unilever reported a 3.5% year-on-year decline in revenue for the first nine months of 2025, totaling €44.8 billion, with all five business segments experiencing a downturn [1][5] - The company is undergoing significant transformation efforts, including divesting over 20 non-core beauty and personal care brands, with plans to complete the ice cream business spin-off by Q4 2025 [3][4] - CEO Fernando Fernandez expressed confidence in improving operating profit margins, projecting at least 18.5% for the second half of 2025, excluding the ice cream business [3] Financial Performance - All business segments saw varying degrees of revenue decline, with home care experiencing the largest drop at 5.3%, followed by ice cream at 4.2%, and beauty & health and food segments down approximately 3% [5] - However, underlying sales (excluding acquisitions, disposals, and currency effects) showed a growth of about 3.9%, with beauty & health leading at 5.1% growth [5] - The Asia-Pacific and Africa regions reported a 6.8% increase in underlying sales, with Indonesia growing by 12.7% and China returning to growth [5] Market Strategy - Unilever's growth in China is attributed to targeted marketing strategies and a premium product mix, although the market still has significant room for growth with a penetration rate of only 66% [3][5] - The company is focusing on high-end markets and e-commerce, particularly in the U.S. and India, reflecting challenges in sustaining growth in China [6] - Unilever is implementing localized innovation strategies, including the establishment of an AI-driven innovation platform to enhance competitiveness in the Chinese market [7][9] Consumer Trends - Chinese consumers are increasingly demanding more effective and clinically validated products, driving rapid upgrades in the beauty industry [8] - The emphasis on local insights and consumer needs is becoming crucial for international companies operating in China, as evidenced by the establishment of significant R&D centers [8][9]