Unilever(UK)(US:UL)2025-10-23 08:32Financial 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][18] - Turnover for Q3 was EUR 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 volumes up 1.7% for the total group [6][7] - Home Care underlying sales grew 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 Personal Care and Wellbeing brands [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 [22][60] - 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, aiming for a higher market share in key categories [22][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year outlook despite some market softness, particularly in Latin America [21][22] - The company anticipates volume growth in Q4 to be at least in line with Q3, with an expected improvement in underlying operating margin for the full year [21][68] - Management highlighted the importance of learning from challenges in Latin America to avoid similar issues in other regions [32][75] Other Important Information - The company has made significant investments in premium innovations and brand execution, which are expected to drive future growth [22][23] - The acquisition of Dr. Squatch is expected to enhance Unilever's presence in the premium male grooming segment [14] Q&A Session Summary Question: Clarification on volume growth expectations into 2026 - Management confirmed expectations of 2% volume growth into 2026, reflecting confidence in long-term market performance [25][28] Question: Growth of Wellbeing and Prestige in North America - Management noted strong double-digit growth in Liquid I.V. and Nutrafol, with improvements in prestige beauty brands like Hourglass and K18 [28][29] Question: Challenges in Latin America - Management acknowledged self-inflicted issues in Brazil, particularly in laundry and deodorants, and outlined corrective actions being taken [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 China and Indonesia - Management reported positive growth in both markets, with significant improvements in Indonesia attributed to a reset in business fundamentals [71][72]