Core Insights - Unilever is undergoing significant strategic transformation amid performance pressures, including layoffs, leadership changes, and divestitures [2][6] Financial Performance - For the first nine months of 2025, Unilever reported a revenue of €44.8 billion, a year-on-year decline of 3.3% [3] - All business segments experienced revenue declines, with the largest drop in home care at 5.3%, followed by ice cream at 4.2%, and beauty & health and food segments both around 3% [3] - In Q3, sales amounted to €14.7 billion, down 3.5% year-on-year, but underlying sales grew by 3.9% [3] - The European market showed a slight revenue increase of 1.9%, while the Americas faced the largest decline at 5.1% [3] Strategic Challenges - Unilever's revenue growth has been sluggish, with a mere 1.9% increase in FY2024 and a net profit decline for two consecutive years [4] - The company faces intense competition from rivals like Procter & Gamble and L'Oréal, alongside changing consumer preferences towards natural and organic products [4] - Rising raw material costs have further pressured profit margins [4] Reform Initiatives - CEO Fernando Fernandez has identified three key reform areas: eliminating inefficient businesses, focusing on high-margin growth sectors, and enhancing digital capabilities [4][6] - The company plans to cut approximately 7,500 jobs globally, representing about 5.9% of its workforce, to save around $800 million [6] Market Dynamics - In China, Unilever's basic sales returned to low single-digit growth in Q3, attributed to targeted marketing strategies and a premium product mix [4][5] - The domestic consumption stimulus policies have revitalized the market, providing a favorable environment for Unilever's products [5] Business Adjustments - Unilever has divested non-core beauty and personal care brands, including Elida Beauty and its ice cream business, to focus on more sustainable and growth-oriented segments [6][7] - The planned spin-off of the ice cream business is expected to be completed by Q4 2025, with anticipated improvements in operating profit margins [7]

Financial Data and Key Metrics Changes - The company reported revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million, and adjusted earnings per share of $3.62, with revenue growth below expectations due to macroeconomic factors [4][14] - Consolidated operating margins expanded by approximately 40 basis points year over year [5] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 5%, with operating income and adjusted EBITDA each growing by 4%, driven by expansion in developing markets [6][7] - The epay segment experienced a revenue decline of approximately 5%, while operating income increased by 4% and adjusted EBITDA by 2%, primarily due to a shift in the wholesale mobile top-up business [8][9] - Money Transfer revenue grew by 1% year over year, but operating income and adjusted EBITDA decreased by 21%, with a significant increase in direct-to-consumer digital transactions [10][13] Market Data and Key Metrics Changes - In Europe, tourism grew approximately 3.3% year over year, but spending patterns became more selective, impacting overall transaction volumes [6][7] - Remittances to Mexico declined by over 12% year over year, highlighting the impact of immigration policy changes on transaction volumes [11][12] Company Strategy and Development Direction - The company is focusing on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange, to drive growth opportunities [23][25] - A new partnership with Citigroup was established to enhance cross-border payments through the Dandelion platform, reinforcing its position in real-time payments [25][43] - The company plans to launch stablecoin use cases in 2026, integrating blockchain technology into its payment ecosystem [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that global economic uncertainty and immigration policy changes have created transitory headwinds but expressed confidence in the underlying fundamentals of the business [20][21] - The company expects to finish the year with year-over-year earnings growth similar to the third quarter, maintaining guidance of 12% to 16% growth [14][45] Other Important Information - The company ended the third quarter with $1.2 billion in unrestricted cash and $2.3 billion in debt, with a recent convertible bond offering strengthening financial flexibility [14][15] - Share repurchases have returned approximately 85% of annual earnings to shareholders over the past four years [15][16] Q&A Session Summary Question: Can you unpack the slight softness in the EFT segment? - Management noted that consumers are being cautious with vacation spending due to increased costs, impacting ATM transactions more than merchant acquiring [46][48] Question: What changed in the Money Transfer segment after a strong Q2? - Management observed choppy trends, with October showing stronger performance compared to September, indicating potential recovery [50][51] Question: How is pricing evolving in the Money Transfer segment? - Pricing remains consistent year over year, with some pressure in specific markets, but overall, it did not adversely impact the third quarter [56][58] Question: What is the outlook for constant currency revenue in Q4? - Early indications in October suggest a potential turnaround, with management cautiously optimistic [72] Question: Can Euronet still generate double-digit EPS growth in 2026? - Management expressed confidence in achieving double-digit EPS growth, citing numerous growth opportunities and the strength of their business model [106][108]

Core Insights - Unilever has decided to close its UK clean beauty brand REN due to internal factors and market challenges, indicating a strategic shift under new CEO Fernando Fernandez [1] - The company has also closed its TATCHA brand's Tmall flagship store and ceased updates on social media, signaling a significant adjustment in its high-end beauty strategy [1] - Unilever's Q1 2025 revenue was €14.8 billion, a slight decline of 0.9% year-on-year, with a 1.3% increase in underlying sales volume [1] Group 1: Business Strategy and Restructuring - Unilever initiated a "growth action plan" last year, which included cutting approximately 7,500 jobs, about 6% of its workforce, and reducing its brand portfolio from over 400 to 30 core brands [2] - The company aims to save approximately €550 million by the end of 2025 through these restructuring efforts, having already reduced around 6,000 full-time employees [2] - The ice cream business is expected to be separated by Q4 2025, with independent operations starting on July 1 [2] Group 2: Financial Performance - Unilever's Q1 revenue breakdown shows Beauty & Wellbeing and Personal Care each generated €3.3 billion, while Home Care, Nutrition, and Ice Cream generated €3.0 billion, €3.4 billion, and €1.8 billion respectively [3] - The company maintains a full-year outlook for 2025, expecting underlying sales growth between 3% and 5% [3] Group 3: Market Dynamics - The Asia-Pacific region is Unilever's largest market, contributing 44% of total revenue, with Q1 revenue of €6.5 billion and a 2% increase in underlying sales [4] - However, the Chinese market has shown signs of decline, with a high single-digit drop in Q1, continuing a trend from the previous year [5] - Unilever is implementing targeted interventions in China, such as expanding product offerings and enhancing brand promotion, with expectations for improvement by H2 2025 [5] Group 4: Competitive Landscape - The company faces increasing competition from local brands and market dynamics, particularly in the personal care and beauty segments, where consumer preferences are shifting towards online and personalized experiences [6] - Unilever's ice cream and personal care segments are under pressure from "consumption downgrade," impacting profitability [6] - Competitors like L'Oréal are planning to maintain growth in China, further intensifying the competitive environment for Unilever [6]

Core Insights - Unilever has announced the closure of its high-end beauty brand REN, marking the first brand shutdown under new CEO Fernando Fernandez [1][12] - The decision to close REN is attributed to internal complexities and external market pressures that have hindered the brand's profitability for an extended period [1][12] Brand Background - REN was established in 2000 and was acquired by Unilever in 2015, becoming the first brand in Unilever's Prestige beauty division [2][5] - The brand focused on high-end consumers and promoted a philosophy of using 100% natural ingredients without chemical or synthetic components [2] Financial Performance - By 2014, REN had entered 50 countries with sales revenue of approximately €40 million (around 330 million RMB) [5] - After its acquisition, REN's performance did not meet expectations, with reports in 2024 indicating that its annual revenue was below €5 million, failing to reach the threshold for "strong brands" [13] Strategic Shift - Unilever has been undergoing a series of business divestitures, including the sale of Elida Beauty and other non-core assets, as part of a broader strategic realignment [12][15] - The company aims to focus on 30 "strong brands," which include 14 billion-euro brands and 16 brands expected to reach that level, while non-core brands like REN are being phased out [12][15] Cost-Saving Measures - Unilever's "Productivity Plan" aims to streamline operations and reduce costs, with a target of saving €550 million by the end of 2025 [15] - The company has increased restructuring costs to 1.4% of revenue, with an annual investment of €1.5 billion (approximately 12.26 billion RMB) to optimize its product portfolio [15] Market Challenges - Unilever's beauty division, including REN, has faced sales declines, attributed to a general slowdown in the beauty market [17] - The company reported a 0.9% year-over-year decline in revenue for Q1 2025, with specific challenges in the Chinese market, where sales fell by a single-digit percentage [17][19] Future Outlook - Unilever plans to enhance its core brand innovation and focus on high-end product offerings while adjusting its marketing strategies in China [18][19] - The company is committed to improving investment quality over scale and aims to optimize its portfolio through divestitures and strategic acquisitions [19]