Unilever H2 Earnings Call Highlights

Core Insights - Unilever reported a turnover of EUR 50.5 billion, a decrease of 3.8% year-over-year, primarily due to a 5.9% foreign exchange headwind, but turnover rose 2.3% when excluding currency effects [1][6] - The company achieved underlying sales growth of 3.5% for the full year, with a notable improvement in the fourth quarter, where underlying sales growth reached 4.2% [3][4] Financial Performance - Free cash flow was EUR 5.9 billion, achieving 100% cash conversion, with a year-end net debt of EUR 23.1 billion, reflecting a net debt to EBITDA ratio of approximately 2x [6][16] - Unilever returned EUR 6 billion to shareholders in 2025, consisting of EUR 4.5 billion in dividends and EUR 1.5 billion in share buybacks [17] Brand and Sales Growth - Unilever's "30 Power Brands," which account for over 78% of group turnover, experienced a 4.3% underlying sales growth for the full year, with a significant acceleration to 5.8% in the fourth quarter [2] - The Beauty and Wellbeing segment delivered 4.3% underlying sales growth, with double-digit growth from brands like Dove and Vaseline [8] Regional Performance - Developed markets contributed 41% of turnover, achieving 3.6% underlying sales growth, with North America showing a standout performance of 5.3% growth [13] - Emerging markets, which made up 59% of turnover, delivered 3.5% underlying sales growth for the year, accelerating to 5.8% in the fourth quarter [14] 2026 Outlook - Management targets underlying sales growth at the bottom of the 4-6% range for 2026, with a focus on volume growth of at least 2% and modest margin improvement [5][19] - A new EUR 1.5 billion share buyback was announced for 2026, emphasizing ongoing portfolio focus in Beauty and Wellbeing, Personal Care, and premium segments [21]