Unilever(UK)(US:UL)2025-09-03 14:02Financial 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]