Core Insights - The global luxury goods industry is seeking a new balance amid structural differentiation, driven by creative innovation, market restructuring, and strategic focus [1] Group 1: Company Performance - Prada Group reported a revenue of €4.07 billion for the nine months ending September 30, 2025, an increase of 8.9% year-on-year, with Miu Miu's sales soaring by 41% [2] - Unilever's Q3 sales exceeded expectations, driven by double-digit growth in beauty brands like Dove, with a total turnover of €14.7 billion, down 3.5% year-on-year [3] - Chanel appointed Sarah Weisz-Pirel as the new communications director, emphasizing the brand's strategic focus on crisis and reputation management [4][5] - Kering's Q3 revenue fell by 10% to €3.42 billion, but the decline is narrowing compared to previous quarters, with North America showing a surprising 3% same-store sales growth [6] - L'Oréal's Q3 sales reached €10.33 billion, a 0.5% increase year-on-year, but still below analyst expectations [7][8] - Hermès reported a 9.6% increase in sales to €3.88 billion, although it fell short of market expectations [10][11] - LVMH is considering selling a 50% stake in Fenty Beauty, reflecting a strategic reassessment of its diverse business portfolio [12] - Ermenegildo Zegna's Q3 revenue grew by 0.2% to €398.2 million, with significant improvement in the Greater China region [13][14] Group 2: Market Trends - Swiss watch exports to the U.S. plummeted by 55.6%, resulting in the U.S. losing its status as the largest export market for Swiss watches [17] - The luxury goods sector is witnessing a shift towards high-end beauty and personal care products, as evidenced by Unilever's strategic focus [3][6] - The appointment of Grace Wales Bonner as Hermès' menswear creative director signifies a cultural and strategic shift towards contemporary aesthetics [16] - The collaboration between Hyatt and Home Inn to enter the long-stay hotel market indicates the growing potential of the business travel segment in China [18][19]

Financial Data and Key Metrics Changes - Unilever reported underlying sales growth of 3.9% in Q3 2025, with underlying price growth at 2.4% and volume contributing 1.5% [5][6] - The total turnover for Q3 was €14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [18][19] - The company expects an adverse currency impact on full-year turnover of around 6% and a 30 basis points impact on the underlying operating margin [19] Business Line Data and Key Metrics Changes - Beauty and Wellbeing and Personal Care were major growth engines, with underlying sales growth of 5.1% and 4.1% respectively [22][10] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volume growth of 1.7% [6][7] - Home Care underlying sales grew by 3.1%, driven by strong performances from CIF and Domestos [15] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by strong performances in Personal Care and Wellbeing [7][8] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][9] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [9][10] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][22] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][17] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products, while maintaining a focus on premium innovations [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform markets despite some softness in certain regions, particularly Latin America [21][22] - The outlook for the remainder of the year remains unchanged, with expectations for underlying sales growth within the 3% to 5% range [21][22] - Management noted that the macro environment in India is favorable, with recent tax reforms expected to boost consumption [9][22] Other Important Information - The company has seen significant growth in digital commerce, with 17% of revenue coming from this channel [58] - The acquisition of Dr. Squatch has expanded Unilever's presence in the premium male grooming segment [14][20] Q&A Session Summary Question: Clarification on volume growth expectations - Management confirmed a 2% volume growth expectation into 2026, highlighting strong performance in North America and challenges in Latin America [25][28] Question: Performance of wellbeing and prestige brands in North America - Wellbeing brands like Liquid I.V. and Nutrafol are approaching $1 billion in revenue, with strong growth noted [28][29] Question: Actions taken in Latin America regarding pricing - Management acknowledged that pricing strategies in Brazil were too aggressive, leading to corrective actions and improvements in sellout [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, wage inflation and currency devaluation are factors to consider for future pricing strategies [38][39] Question: Performance in Mexico and hard currency earnings expectations - Management noted soft market conditions in Mexico but expressed confidence in achieving positive hard currency earnings for the year [66][68] Question: Growth in Indonesia and China - Management reported strong growth in Indonesia and improvements in China, attributing success to strategic changes in market approach and product offerings [71][72]

Financial Data and Key Metrics Changes - The company reported a revenue of $61 billion for 2024, with a profit of $11 billion and an underlying operating margin of 18.4% [3][4] - Cash generation was strong, with $7 billion in cash returned to shareholders, including $4.3 billion in dividends and $1.5 billion in share buybacks [4][5] - The return on invested capital was noted at 18.1%, indicating a strong competitive position [5] Business Line Data and Key Metrics Changes - The company operates five business groups: Youth and Wellbeing, Personal Care, Home Care, Foods, and a fifth group being separated, which generated $8.3 billion [4][7] - The focus is shifting towards 30 power brands that account for 75% of revenue, with a reported volume growth of 3.8% in these brands last year [8][10] - The separation of the Ice Cream business is expected to improve gross margins to nearly 47% and enhance return on invested capital by approximately 100 basis points [7][8] Market Data and Key Metrics Changes - The U.S. and India are identified as key growth markets, with the U.S. expected to contribute 21% and India 14% to revenue post-separation of Ice Cream [17][18] - The company has seen significant growth in the U.S., with a 20% increase in sales with Amazon and a strong performance in beauty and personal care [41][42] - In India, the company holds over 50% market share in several categories, with expectations for volume growth to align with GDP growth [20][48] Company Strategy and Development Direction - The company is transitioning to a category-led organization, focusing on fewer brands to enhance efficiency and effectiveness [3][4] - There is a clear strategy to increase exposure to premium products while divesting from value segments, aiming for beauty and personal care to represent two-thirds of revenue [16][17] - The company is investing heavily in e-commerce, with 20% of business already in this channel, and is establishing hubs in the U.S., China, and India for further growth [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving volume growth of 3% to 5% in the U.S. and anticipates a stronger performance in the second half of the year [34][43] - The company is addressing challenges in markets like Indonesia and Latin America, with plans to improve fundamentals and correct pricing strategies [44][46] - There is optimism regarding the future, with a focus on building a culture of accountability and performance [36] Other Important Information - The company has reduced its white-collar workforce by 18% and is on track to achieve $800 million in savings by the end of 2026 [10][11] - Significant changes in leadership and talent acquisition are underway to ensure the company remains competitive and innovative [15][49] Q&A Session Summary Question: Can the company continue to outperform in the U.S. market? - Management believes the portfolio has been radically transformed and is confident in achieving consistent volume growth, with strong performance noted with major retailers like Walmart and Amazon [41][42] Question: What are the expectations for volume growth in India? - Management expects to align volume growth with India's GDP growth of 5% to 6% in the long run, with a focus on consistent growth in the short term [48] Question: How does the company plan to enhance desirability in food products? - Management emphasized that desirability is not limited to beauty and can be applied to food through premium experiences and strong marketing strategies [50][51]

Financial Data and Key Metrics Changes - The company reported a revenue of $61 billion for 2024, with a profit of $11 billion and an underlying operating margin of 18.4% [3][4] - Cash generation was strong, with $7 billion in cash returned to shareholders, including $4.3 billion in dividends and $1.5 billion in share buybacks [4][5] - The return on invested capital was noted at 18.1%, indicating a strong competitive position [5] Business Line Data and Key Metrics Changes - The company operates five business groups: Youth and Wellbeing, Personal Care, Home Care, Foods, and a fifth group being separated, which generated $8.3 billion [4][7] - The focus on 30 power brands, which account for 75% of revenue, resulted in a volume growth of 3.8% last year [9][12] - The separation of the Ice Cream business is expected to improve gross margins to nearly 47% and enhance return on invested capital by approximately 100 basis points [8] Market Data and Key Metrics Changes - The U.S. and India are identified as key growth markets, with the U.S. expected to contribute 21% and India 14% to revenue post-separation of Ice Cream [17] - In the U.S., the company has seen significant growth, with a 20% increase in sales with Amazon and a strong performance in beauty and personal care [42] - India is projected to be a major growth driver, with over 50% market share in several categories and a focus on digitizing distribution [20][21] Company Strategy and Development Direction - The company is transitioning to a category-led organization, focusing on premiumization and reducing exposure to value segments [16][17] - There is a clear strategy to enhance marketing capabilities, emphasizing "desire at scale" and creating markets through innovative marketing approaches [22][24] - The leadership team has been refreshed, with a focus on accountability and performance culture [15][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent volume growth of 3% in the U.S. despite challenging market conditions [41] - The company anticipates an acceleration in volume performance in the second half of the year, particularly in Indonesia and China [44][45] - There are expectations for continued growth in India, aligning volume growth with GDP growth [49] Other Important Information - The company has made significant changes to its organizational structure, reducing its white-collar workforce by 18% and targeting $800 million in savings by 2026 [12][15] - The focus on e-commerce is increasing, with 20% of business already in this channel, and specific hubs being developed for Amazon, TikTok, and quick commerce in India [33] Q&A Session Summary Question: Can the company continue to outperform in the U.S. market? - The company believes it can maintain a consistent volume growth of 3% and has a strong portfolio with significant exposure to beauty and personal care [41] Question: What are the expectations for volume growth in the second half of the year? - Management expects an acceleration in volume growth in the second half, particularly in Indonesia and China, while Latin America may face challenges [44][45] Question: How does the company plan to enhance desirability in its food segment? - The company aims to apply the concept of desirability across all categories, emphasizing indulgence in foods and premium experiences in home care [51]

Financial Data and Key Metrics Changes - The company reported a revenue of $61 billion for 2024, with a profit of $11 billion and an underlying operating margin of 18.4% [3][4] - Cash generation was strong, with $7 billion in cash returned to shareholders, including $4.3 billion in dividends and $1.5 billion in share buybacks [4][5] - The return on invested capital was noted at 18.1%, indicating a strong competitive position [5] Business Line Data and Key Metrics Changes - The company operates five business groups: Youth and Wellbeing, Personal Care, Home Care, Foods, and a fifth group being separated, which generated $8.3 billion [4][7] - The focus is shifting towards 30 power brands that account for 75% of revenue, with a reported volume growth of 3.8% in these brands last year [9][10] - The gross margin is expected to approach 47% post-separation of the Ice Cream business, with an anticipated 100 basis points increase in return on invested capital [8] Market Data and Key Metrics Changes - The U.S. and India are identified as key growth markets, with the U.S. expected to contribute 21% and India 14% to revenue after recent acquisitions [17][18] - In the U.S., the company has seen significant growth, with a 20% increase in sales with Amazon and a strong performance in beauty and personal care [42] - India is projected to be a major growth driver, with over 50% market share in several categories and a focus on digitizing distribution [20][21] Company Strategy and Development Direction - The company is transitioning to a category-led organization, focusing on premiumization and reducing exposure to value segments [16][17] - There is a strong emphasis on building a marketing and sales machine, with a new philosophy centered around "desire at scale" [22][29] - The leadership team has been refreshed, with a focus on accountability and performance culture [15][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent volume growth, targeting 3% to 5% in the U.S. and a strong performance in India [41][49] - The company is addressing challenges in specific markets, such as Indonesia and Latin America, with strategic adjustments to improve performance [44][46] - Future expectations include a focus on beauty and personal care, with a commitment to maintaining a competitive edge in the market [36][37] Other Important Information - The company has reduced its white-collar workforce by 18% and is on track to achieve $800 million in savings by the end of 2026 [12] - Significant investments have been made in brand and marketing, with a 33% increase in marketing budgets over the last four to five years [12][13] - The company is leveraging influencer marketing, aiming for one influencer per zip code in India, with a robust screening process in place [54] Q&A Session Summary Question: Can the company continue to outperform in the U.S. market? - The company believes it can maintain consistent volume growth, with a strong portfolio and significant exposure to e-commerce [41] Question: What are the expectations for volume growth in the second half of the year? - Management anticipates acceleration in volume growth, particularly in Q4, with improvements noted in key markets like Indonesia and China [44][45] Question: How does the company plan to enhance desirability in its food segment? - The company aims to apply the concept of desirability across all categories, emphasizing indulgence in foods and premium experiences in home care [51]

Financial Data and Key Metrics Changes - Underlying sales growth for the first half was 3.4%, with volumes contributing 1.5% and price growth at 1.9% [8][31] - Turnover for the first half was €30.1 billion, down 3.2% year on year, primarily due to a negative currency impact of 4% [31][36] - Underlying operating profit was €5.8 billion, a decline of 4.8% versus the prior year, with underlying earnings per share at €1.59, down 2.1% [36] Business Line Data and Key Metrics Changes - Beauty and Well-being underlying sales growth was 3.7%, driven by 1.7% volume and 2% price [15] - Personal Care delivered 4.8% underlying sales growth, with 1.4% from volume and 3.3% from price [19] - Homecare underlying sales grew 1.3%, with 1.1% from volume and 0.2% from price [23] - Foods delivered competitive sales growth of 2.2%, with 0.3% from volume and 1.9% from price [25] - Ice cream underlying sales grew 5.9%, driven by a 3.8% increase in volume and 2% price growth [26] Market Data and Key Metrics Changes - Developed markets represented 44% of group turnover, with first half underlying sales growth of 4.3% [10] - North America saw underlying sales growth of 5.4%, with volumes up 3.7% [5] - Asia Pacific Africa, representing 43% of group turnover, delivered underlying sales growth of 3.5% [12] - Latin America grew only 0.5%, with a 4.6% decline in volume [13] Company Strategy and Development Direction - The company is focused on a transformation towards beauty and well-being, with significant investments in premium brands and innovation [50][56] - The demerger of the ice cream business is set for mid-November, with plans to retain a stake of just below 20% [28][29] - The company aims for multiyear volume growth of at least 2% and consistent gross margin expansion [47][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a second half underlying sales growth of 3% to 5%, with expectations for improved performance in emerging markets [42][46] - The macroeconomic environment remains uncertain, particularly in Latin America and China, but there are signs of recovery in India and Indonesia [46][94] - The company anticipates an improvement in underlying operating margin for the full year, with second half margins expected to be at least 18.5% [42][60] Other Important Information - The company completed a share buyback program of €1.5 billion, contributing 1.5% to earnings in the first half [38][41] - Free cash flow for 2025 was €1.1 billion, down from €2.2 billion in the prior year due to lower operating profit and ice cream separation costs [38][39] Q&A Session Summary Question: Expectations for ex-ice cream performance and volume acceleration - Management expects volume growth of about 2% for the remaining company in the second half, supported by improved market conditions and strong brand investments [63][65] Question: Insights on M&A strategy and recent acquisitions - The company remains committed to bolt-on M&A, focusing on beauty and personal care brands with strong digital presence and functionality, such as Doctor Squatch and Wilde [71][72] Question: Outlook for Latin America and performance in key markets - Management acknowledged a weak quarter in Latin America, with challenges in Brazil and Mexico, but expects improvements in the second half as pricing strategies are adjusted [77][81] Question: Recovery expectations in Asia, particularly India and Indonesia - Management is optimistic about growth in India, with strong performance in Home Care and e-commerce, while Indonesia is expected to show positive volume growth in the second half [89][92]

Financial Data and Key Metrics Changes - Underlying sales growth for the first half of 2025 was 3.4%, with volumes contributing 1.5% and price growth at 1.9% [6][30] - Turnover for the first half was €30.1 billion, down 3.2% year on year, primarily due to a negative currency impact of 4% [30][36] - Underlying operating profit was €5.8 billion, a decline of 4.8% versus the prior year, and underlying earnings per share was €1.59, down 2.1% [34][36] Business Line Data and Key Metrics Changes - Beauty and Well-being achieved underlying sales growth of 3.7%, driven by 1.7% volume and 2% price [14] - Personal Care delivered 4.8% underlying sales growth, with 1.4% from volume and 3.3% from price [17] - Homecare underlying sales grew 1.3%, with 1.1% from volume and 0.2% from price [21] - Foods delivered competitive sales growth of 2.2%, with 0.3% from volume and 1.9% from price [23] - Ice cream underlying sales grew 5.9%, driven by a 3.8% increase in volume and 2% price growth [24] Market Data and Key Metrics Changes - Developed markets represented 44% of group turnover, with first half underlying sales growth of 4.3% [8] - North America saw underlying sales growth of 5.4%, with volumes up 3.7% [4] - Asia Pacific Africa, representing 43% of group turnover, delivered underlying sales growth of 3.5% [11] - Latin America grew only 0.5%, with a 4.6% decline in volume due to challenging macroeconomic conditions [12] Company Strategy and Development Direction - The company is focused on a transformation towards beauty and well-being, with significant investments in premium brands and innovation [48][54] - The demerger of the ice cream business is set for mid-November, with the intention to retain a stake of just below 20% in the new entity [26][27] - The company aims for multiyear volume growth of at least 2% and consistent gross margin expansion, targeting mid-single digit underlying sales growth [45][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a second half underlying sales growth of 3% to 5%, supported by strong performance in developed markets and improving trends in emerging markets [41][44] - The company anticipates an improvement in underlying operating margin for the full year, with second half margins expected to be at least 18.5% [41][54] - Management acknowledged challenges in Latin America and China but expects improvements in the second half due to operational interventions [44][92] Other Important Information - The company completed a share buyback program of €1.5 billion, contributing 1.5% to earnings in the first half [36][39] - Free cash flow for 2025 was €1.1 billion, down from €2.2 billion in the prior year due to lower operating profit and ice cream separation costs [36][37] Q&A Session Summary Question: Expectations for ex-ice cream performance and volume acceleration - Management expects to achieve volume growth of about 2% for the remaining company in the second half, supported by improved market conditions and strong brand investments [61][63] Question: Insights on M&A strategy and recent acquisitions - The company remains committed to bolt-on M&A, focusing on acquiring brands with strong digital presence and functionality, such as Doctor Squatch and Wilde [70][72] Question: Outlook for Latin America and performance in key markets - Management noted a weak quarter in Latin America due to economic pressures but expects improvements with strategic pricing adjustments and innovation [76][80] Question: Recovery expectations in Asia, particularly India and Indonesia - Management is optimistic about growth in India, expecting continued volume increases, while Indonesia is showing signs of recovery with improved fundamentals [88][90]