Unilever(UK)(US:UL)2025-10-23 08:30Financial 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][18] - Turnover for Q3 was €14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [17][18] - 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 [18] 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 [20][11] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volumes up 1.7% [5][6] - Home Care underlying sales grew 3.1%, driven by strong performances from CIF and Domestos [12][14] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by strong performance in Personal Care and Wellbeing [6][19] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][8] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [8][9] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][20] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][16] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products [20][21] 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 [19][21] - The outlook for the remainder of the year remains unchanged, with expectations for underlying sales growth within the 3% to 5% range [19][21] - Management highlighted the importance of premium innovations and digital commerce in driving future growth [20][21] Other Important Information - The company has seen significant improvements in its operational execution and brand performance, particularly in developed markets [2][6] - The acquisition of Dr. Squatch has expanded Unilever's presence in the premium male grooming segment [12][18] Q&A Session Summary Question: Clarification on volume growth into 2026 - Management confirmed a 2% volume growth expectation into 2026, highlighting strong performance in North America and challenges in Latin America [24][26] Question: Growth of wellbeing and prestige brands in North America - Management noted double-digit growth in Liquid I.V. and Nutrafol, with improvements in prestige beauty brands like Hourglass and K18 [27][28] Question: Actions taken in Latin America regarding pricing - Management acknowledged that pricing strategies in Brazil were too aggressive, leading to corrective actions and expected improvements in competitiveness [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, there are inflationary pressures in certain categories, and pricing adjustments will be made sensibly [33][36] Question: Performance in Mexico - Management reported soft market conditions in Mexico due to external factors but emphasized strong competitiveness in their portfolio [64][66] Question: Performance in Indonesia and China - Management expressed satisfaction with the growth in Indonesia and noted improvements in China due to strategic changes in the business model [70][72]