Core Insights - Unilever's beauty and well-being division outperformed the overall company growth in 2025, with underlying sales increasing by 4.3% to 12.8 billion euros, driven by both volume and price growth [1] - The beauty and well-being segment contributed 25% to Unilever's total turnover, with an underlying operating profit of 2.5 billion euros, reflecting a 3.2% year-on-year decline [2] - Overall, Unilever's underlying sales rose by 3.5% to 50.5 billion euros, primarily due to higher prices, with power brands like Dove and Vaseline accounting for 78% of turnover [3] Financial Performance - The beauty and well-being division's growth was supported by double-digit increases in wellness products, Vaseline, and Dove, while prestige beauty and core skin care experienced low-to-mid single-digit growth [1] - The underlying operating margin for the beauty and well-being division decreased to 19.2%, impacted by a slight decline in gross margins and increased brand and marketing investments [2] - Unilever's power brands achieved a 4.3% underlying sales growth, primarily driven by volume, highlighting their significance in the company's overall performance [3] Strategic Initiatives - CEO Fernando Fernandez emphasized Unilever's transformation into a "simpler, sharper and faster company," focusing on volume growth, positive mix, and strong gross margins [4] - The company is prioritizing growth in beauty, well-being, and personal care, with a focus on premium segments and digital commerce, particularly in the U.S. and India [4] - Unilever plans to streamline operations by cutting 7,500 office-based roles globally, aiming for total cost savings of around 800 million euros between 2024 and 2027 [5]

Financial Data and Key Metrics Changes - Unilever reported a 4% underlying sales growth in Q3 2025, with a volume growth acceleration to 1.7% excluding ice cream, despite subdued markets [2][4] - The underlying sales growth was 3.9% with underlying price growth at 2.4% and volume contributing 1.5% [7][8] - Turnover for Q3 was EUR 14.7 billion, down 3.5% year on year, with a negative currency impact of 6.1% [27][28] Business Line Data and Key Metrics Changes - Beauty and Well-being saw a 5.1% underlying sales growth, driven by strong volume growth [15] - Personal Care achieved a 4.1% underlying sales growth, with volume growth of 1% and price growth of 3.1% [17] - Home Care underlying sales grew 3.1%, with volume growth of 2.5% and price growth of 0.6% [20] Market Data and Key Metrics Changes - North America grew underlying sales by 5.5%, with volume growth of 5.4%, driven by Personal Care and Well-being brands [9][10] - Europe experienced a 1.1% underlying sales growth, with a 0.6% decline in volume and 1.7% growth from price [10][11] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China [4][12] Company Strategy and Development Direction - The company is focusing on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][32] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [5][26] - The strategic priority is to strengthen the portfolio with more beauty, well-being, and personal care products [32][34] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving full-year outlook despite some softness in certain markets, particularly Latin America [30][31] - The company expects underlying sales growth to remain within the 3% to 5% multiyear range, with volume growth in Q4 expected to be at least in line with Q3 [30][31] - Management highlighted the importance of premium innovations and brand investments to drive future growth [34][36] Other Important Information - The company is experiencing a significant shift in consumer behavior towards premium products and digital channels [32][34] - The macroeconomic environment in India is favorable, with recent tax reforms expected to boost consumption [12][14] - The company is committed to maintaining competitive pricing while managing inflationary pressures [57][58] Q&A Session Summary Question: Clarification on volume growth expectations into 2026 - Management confirmed a 2% volume growth expectation into 2026, reflecting confidence in long-term market performance [37][50] Question: Growth of well-being and prestige brands in North America - Management reported strong double-digit growth in well-being brands like Liquid IV and Nutrafol, with a recovery in prestige beauty brands [41][42] Question: Actions taken in Latin America due to macroeconomic pressures - Management acknowledged challenges in Brazil and highlighted corrective actions taken in pricing and product formats to regain competitiveness [45][49] Question: Pricing outlook in a benign commodity cost environment - Management indicated that while commodity costs are benign, pricing adjustments will be necessary to manage inflationary pressures [53][58] Question: Performance of hair care brands in the U.S. - Management noted that TRESemmé has returned to growth in Q3, while some brands were consciously delisted to focus on sustainable growth [64][66] Question: Update on Liquid IV's global rollout - Management confirmed that Liquid IV is performing well in the U.S. and has been rolled out to eight markets, with plans for further expansion [66][67] Question: Performance in Mexico and expectations for hard currency earnings - Management reported soft market conditions in Mexico but expressed confidence in achieving positive hard currency earnings for the year [92][96] Question: Performance in Indonesia and China - Management expressed satisfaction with the growth in Indonesia and noted improvements in China, with all business groups returning to growth [99][101]

Core Insights - Unilever's beauty and well-being sales drove a 3.9% underlying group sales growth to 14.7 billion euros in Q3 [1][2] - The beauty and well-being division reported a 5.1% underlying sales growth to 3.2 billion euros, marking the highest growth within the group [2][3] - Overall sales at actual exchange fell 3.5% year-on-year due to net disposals and currency headwinds [2] Beauty and Well-Being Division Performance - Top performers included Dove hair, Vaseline, Liquid I.V., Nutrafol, Hourglass, and K18, all achieving double-digit growth [3] - Prestige beauty grew at mid-single digits, while Paula's Choice and Dermalogica returned to low-single-digit growth after previous declines [3] - Liquid I.V.'s sugar-free range, launched in mid-2023, now accounts for nearly 30% of total brand sales [4] Personal Care Division Performance - The personal care division saw a 4.1% underlying sales growth to 3.3 billion euros, with strong performance from Dove's premium innovations [4] Future Outlook - The CEO stated that the full-year underlying sales growth is expected to be between 3% and 5%, with second-half growth anticipated to exceed the first half [5] - An improvement in underlying operating margin is expected for the full year, with second-half margins projected to be at least 18.5% [6] Market Dynamics - Emerging markets like Indonesia and China returned to growth, driven by Unilever's power brands [7] - Significant investments in manufacturing, logistics, and e-commerce in China contributed to the growth across all major divisions [8] Strategic Focus - Unilever is prioritizing beauty, well-being, and personal care, with a focus on premium segments and digital commerce [9] - The underlying growth exceeded analysts' expectations of 3.7% [9] Market Reaction - RBC Capital Markets described the third-quarter numbers as "reassuring," with encouraging momentum in China and India expected to accelerate in Q4 [10]

Core Viewpoint - Unilever's financial performance in the first half of 2025 shows a decline in overall revenue but indicates a positive trend in strategic transformation and market focus, particularly in the Chinese market [2][4][30]. Financial Performance - Total revenue for the first half of 2025 was €3.01 billion (approximately ¥24.76 billion), a year-on-year decrease of 3.2%, primarily due to currency fluctuations (-4.0%) and business adjustments (-2.5%), while underlying sales grew by 3.4% [2]. - Operating profit was €530 million (approximately ¥4.37 billion), reflecting a significant year-on-year drop of 10.6% [2]. Strategic Focus - CEO Fernando Fernandez emphasized the importance of "focus" and "agility" in driving growth, highlighting the company's strategic correctness in both developed and emerging markets [4]. - Unilever is undergoing a profound transformation, with plans to spin off its ice cream business and leverage influencer marketing as a new growth engine [4][12]. China Market Insights - In China, Unilever's underlying sales saw a slight decline in the first half, but improvements were noted in the second quarter, suggesting that recent adjustments are beginning to yield results [6][26]. - The company is accelerating premiumization and localized innovation, exemplified by the launch of the Vaseline Water Radiance Body Essence series tailored for Chinese consumers [8][27]. Regional Performance - Revenue contributions from developed markets (44%) and emerging markets (56%) showed growth rates of 4.3% and 2.8%, respectively, indicating that the Chinese market is crucial for the group's return to positive growth [10][30]. - The beauty and personal care segments generated €650 million (approximately ¥5.35 billion) in revenue, with underlying sales growth of 3.7% and 4.8% [10]. Business Restructuring - Unilever is actively engaged in mergers and acquisitions, focusing on high-end beauty and personal care brands, while divesting non-core assets to optimize its business portfolio [13][16]. - The company has made several acquisitions, including a 90.5% stake in the high-end beauty brand Minimalist and the purchase of the UK-based eco-friendly personal care brand Wild [16][17]. Marketing Strategy - Unilever is shifting towards a "influencer-first" strategy, planning to increase social media spending from 30% to 50% of its total advertising budget and expand collaborations with influencers [18][19]. - This strategy aims to enhance brand relevance and connection with younger consumers, particularly in the beauty sector [20]. Future Directions - Unilever's three core development directions include enhancing beauty and health, increasing investments in the U.S. and Indian markets, and deepening high-end and digital transformation [22][23][24]. - The company anticipates a rebound in the Chinese market, supported by regional growth and strategic adjustments, with expectations of a sales growth rate between 3% and 5% for the full year [30][29].

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]