(Reuters) -Procter & Gamble (PG) on Friday beat Wall Street estimates for first-quarter revenue and profit, helped by strong demand for its beauty and hair-care products amid higher prices and a broader slowdown in spending due to economic uncertainties. The Tide maker, a bellwether for the global consumer goods industry, reduced its annual tariff cost estimate to about $400 million after tax, from about the $800 million forecast in July, largely on Canada lifting retaliatory tariffs on U.S. goods. Howev ...

Unilever (NYSE:UL) Q3 2025 Earnings Call October 23, 2025 03:30 AM ET Company ParticipantsFernando Fernandez - CEODavid Hayes - Managing DirectorSarah Simon - Managing DirectorSrinivas Phatak - CFOWarren Ackerman - Head of European Consumer Staples ResearchConference Call ParticipantsNone - AnalystEdward Lewis - Stock AnalystNone - AnalystJeff Stent - Senior Equity AnalystNone - AnalystFernando FernandezHello and welcome to Unilever's third quarter trading statement for 2025. Thank you for being with us tod ...

Unilever (NYSE:UL) Q3 2025 Earnings Call October 23, 2025 03:30 AM ET Speaker1Hello and welcome to Unilever's third quarter trading statement for 2025. Thank you for being with us today. I am joined here by Srinivas Phatak. Srinivas's appointment as Chief Financial Officer was confirmed by the Board last month following an extensive search process. Srinivas's vast experience and expertise are great assets for Unilever and I am really delighted we will keep building on the strong partnership that we have for ...

1 Safe harbour statement This presentation 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', 'ambiti ...

Core Insights - Unilever reported a total revenue of €30.1 billion for the first half of 2025, a decline of 3.2% year-on-year, impacted by unfavorable exchange rates (-4%) and net asset disposals (-2.5%) [1] - Net profit decreased by 5.1% to €3.8 billion [1] - The ice cream business, which is set to be spun off, was the only segment to show revenue growth, reaching €4.6 billion, up 0.2% year-on-year [1] Revenue Breakdown - Beauty and Wellness: Revenue of €6.5 billion, down 0.8% [1] - Personal Care: Revenue of €6.5 billion, down 5.9% [1] - Home Care: Revenue of €5.9 billion, down 6.7% [1] - Food: Revenue of €6.6 billion, down 1.8% [1] Sales Performance - Underlying sales growth (USG) for the first half was 3.4%, with volume growth of 1.5% and price contribution of 1.9% [3] - Beauty and Wellness segment saw a USG of 3.7%, with volume contributing 1.7% and price contributing 2% [3] - Personal Care segment achieved a USG of 4.8%, with volume contributing 1.4% and price contributing 3.3% [4] Profitability - Operating profit for Beauty and Wellness was €1.3 billion, down 3.7% year-on-year [3] - Operating profit for Personal Care was €1.4 billion, down 9.8% year-on-year [4] - Overall gross margin reached 45.7%, with a basic operating profit margin of 19.3%, down 30 basis points from the previous year [8] Future Outlook - Unilever expects full-year underlying sales growth to be in the range of 3% to 5%, with second-half growth anticipated to exceed that of the first half [8] - The company is focusing on enhancing its Beauty and Wellness and Personal Care segments, with increased investments in the U.S. and Indian markets [7] - The ice cream business is expected to complete its spin-off by mid-November 2025, transitioning into an independent operating company [7]

H1 2025 Performance - Unilever's H1 2025 underlying sales growth (USG) was 3.4%, driven by 1.5% underlying volume growth (UVG) and 1.9% underlying price growth (UPG)[10] - Power Brands' Q2 2025 USG improved to 4.4%, with 2.1% UVG and 2.3% UPG[12] - The company's turnover decreased by 3.2% year-over-year, from €31.1 billion in H1 2024 to €30.1 billion in H1 2025, impacted by net disposals and adverse currency effects[48] Segment Performance - North America achieved 5.4% USG in H1 2025, representing 23% of Group turnover[13] - Europe saw 3.4% USG in H1 2025, with 3.7% UVG and 1.6% UPG, accounting for 21% of Group turnover[15, 16] - Asia Pacific Africa (APA) experienced 3.5% USG in H1 2025, while Latin America had 0.5% USG[19] - Beauty & Wellbeing segment achieved 3.7% USG in H1 2025, with a €6.5 billion turnover[21, 22] - Dove's H1 2025 USG was 4.8%, driven by 3.3% UPG and 1.4% UVG[26] Strategic Initiatives - The Ice Cream business demerger is on track for mid-November, with Unilever retaining less than 20% stake in TMICC[8, 45] - Post demerger, based on FY 2024 financials, Unilever expects approximately €52 billion turnover, +160 bps GM, +100 bps UOM, +100 bps ROIC, ~100% cash conversion, and ~2x expected leverage[70] Financial Outlook - The company is on track to deliver its full-year 2025 outlook, including an improvement in FY underlying operating margin and USG within the 3-5% range[62, 63] - The company expects second half margins of at least 18.5%[63] - The company completed €1.5 billion share buyback in H1 2025[61]

Core Points - Dove, Walmart, and Big Brothers Big Sisters of America (BBBSA) have launched a multi-year partnership aimed at supporting youth mentorship and confidence as students prepare for the new school year [2][4] - From July 1 to August 31, 2025, Dove will donate $0.05 for every Dove and Dove Men + Care item purchased at Walmart, with a minimum donation of $200,000 and a maximum of $250,000 [6] Group 1: Partnership Details - The partnership includes a series of back-to-school events at select Walmart locations throughout August, featuring interactive activities that promote mentorship and confidence [3][4] - Events will allow attendees to engage with local mentors and mentees, participate in confidence-building activities, and receive product samples and resources [3][4] Group 2: Organizational Background - Dove is recognized as the world's largest provider of self-esteem education, having reached over 130 million young people through its Dove Self-Esteem Project [4] - Big Brothers Big Sisters of America has over 120 years of experience in youth mentoring, operating in all 50 states and more than 5,000 communities [4][9] - Walmart serves approximately 270 million customers weekly and reported a fiscal year 2025 revenue of $681 billion, emphasizing its role in community support [10]

Marketing Strategy - Unilever utilized influencers and AI to promote a cookie-scented Dove product line [1] - The company intends to replicate this strategy to revitalize underperforming toiletry products [1]

Core Insights - The rivalry between Procter & Gamble (PG) and Unilever (UL) is significant in the global consumer goods sector, with both companies dominating the fast-moving consumer goods (FMCG) market [1][4]. Procter & Gamble (PG) - PG is recognized for its brand-heavy strategy, focusing on high-margin household and personal care products, which grants it strong pricing power and market dominance in North America [2][5]. - The company operates in over 180 countries with a portfolio of well-known brands, creating a competitive moat that allows for swift adaptation to market changes [5][6]. - PG emphasizes brand superiority and innovation, investing in differentiated products across various price tiers, which helps maintain consumer loyalty without heavy discounting [6][7]. - Despite facing potential tariff costs projected at $1-$1.5 billion annually, PG is managing these impacts through supply-chain localization and strategic pricing adjustments [8]. - The Zacks Consensus Estimate for PG's fiscal 2025 sales and EPS indicates year-over-year growth of 0.2% and 3%, respectively, with projected increases of 2.6% and 3.2% in fiscal 2026 [17]. - PG's stock trades at a forward P/E multiple of 24.06, above its 5-year median, indicating a premium valuation that reflects its consistency and brand strength [22][26]. Unilever (UL) - UL adopts a diversified approach with operations in over 190 countries, focusing on both developed and emerging markets, which enhances its market coverage [9][10]. - The company's "Power Brands" account for over 75% of its turnover, demonstrating resilience and growth potential, particularly in developed markets [10][11]. - Under new leadership, UL is pursuing a consumer-focused strategy that emphasizes premiumization and digital marketing, aligning its products with evolving consumer preferences [12][16]. - Unilever's financial performance shows underlying sales growth of 3% in the first quarter of fiscal 2025, with strong contributions from personal care and wellbeing categories [14]. - The Zacks Consensus Estimate for UL's fiscal 2025 sales and EPS suggests year-over-year growth of 4.4% and 2.5%, respectively, with projected increases of 3.2% and 6.1% in fiscal 2026 [17]. - UL's stock has outperformed PG, with a total return of 19.1% over the past year, compared to PG's 3.8% growth [20]. - UL trades at a forward P/E multiple of 18.85, indicating it may be undervalued relative to PG, presenting a potential long-term investment opportunity [22][25]. Comparative Analysis - Both companies have experienced downward estimate revisions recently, but UL shows stronger projected revenue growth compared to PG [19]. - Unilever's more attractive valuation and diversified global presence position it favorably for future growth, while PG's premium valuation reflects its defensive qualities [25][26]. - Investor sentiment is shifting towards UL, supported by positive revisions to its earnings estimates, indicating confidence in its financial performance [28].

Core Viewpoint - Analysts believe Unilever's stock price has the potential to reach new highs by 2025, supported by improved sentiment and a rising price target [1][2]. Group 1: Analyst Sentiment and Price Target - The price target for Unilever is projected to increase by 28% over the next 12 months, reaching an all-time high [2]. - Analysts have upgraded their sentiment on Unilever from Reduce to Hold, indicating potential for the stock to exceed $70 in the long term [2]. Group 2: Company Performance and Market Position - Unilever holds a market-leading position in the Consumer Staples sector, which is less cyclical and offers stable revenue and cash flow [4]. - The company has a diverse portfolio of globally recognized brands, contributing to steady year-over-year growth and cash flow generation [5]. Group 3: Financial Health and Capital Returns - Unilever's dividend yield is approximately 3.4%, with a reliable payout ratio of 60% of earnings, and a trend of increasing payouts annually [6]. - The company is on track to complete a $2 billion share buyback authorization, enhancing its capital return strategy [7]. Group 4: Recent Financial Performance - In Q1, Unilever reported organic growth of 3.5% and solid margins, with positive contributions from all five operating segments [8][9]. - The company anticipates organic business growth of 3% to 5%, potentially exceeding guidance due to favorable macroeconomic conditions [9]. Group 5: Strategic Moves - Unilever is progressing with the divestiture of its Ice Cream segment, which could raise up to $8 billion, strengthening its balance sheet [10].