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Unilever Expects 2025 Targets Amid Rebound, Ice Cream Separation
ByAinvest
Friday, Apr 25, 2025 10:20 am ET1min read
Unilever's turnaround plan is on track to meet its 2025 goals, with sales boosted by its key brands despite a hit to turnover from net disposals and currency effects. The company's confidence in its plan comes after a strong performance in the first half of the year, with sales growth driven by its top brands such as Axe, Dove, and Knorr.
Unilever Plc. (UL, ULVR.L) reported its Q1 2025 financial results, showcasing a turnaround plan that is on track to meet its 2025 goals. The company's underlying sales growth of 3% exceeded analysts' expectations of 2.8% [1]. This growth was driven by a 1.7% increase in prices and a 1.3% rise in volumes, reflecting the strength of the company's premium and innovation-led portfolio in developed markets [2].Total revenue for Q1 2025 was €14.8bn, down 0.9% compared to the previous year. This decline was primarily due to brand disposals (-2.7%) and an unfavourable currency effect (-1.1%) [1]. Despite these factors, Unilever's shares listed in Amsterdam were up 0.7% on Thursday morning, outperforming the pan-European STOXX Europe 600 basic consumer goods index, which declined by 0.1% [1].
Unilever's confidence in its turnaround plan is bolstered by the strong performance in the first half of the year. The company expects underlying growth of 3% to 5% for 2025, accompanied by a moderate improvement in its operating margin [1]. The company's key brands, such as Axe, Dove, and Knorr, have been significant drivers of this growth.
Looking ahead, Unilever continues to expect 3% to 5% underlying sales growth for fiscal 2025, with margins in the first and second half more balanced than in 2024. The company also expects restructuring costs of around 1.4% of Group turnover in 2025 [2].
Additionally, Unilever is on track to complete the separation of its Ice Cream business, which will operate as The Magnum Ice Cream Co. from July 1. The company's productivity program, launched in 2024, is also ahead of plan, with 800 million euros of savings and a reduction of 7,500 mainly office-based roles delivered so far [2].
References:
[1] https://www.marketscreener.com/quote/stock/UNILEVER-PLC-9590186/news/Unilever-targets-confirmed-Q1-in-line-with-expectations-49702464/
[2] https://www.nasdaq.com/articles/unilever-q1-turnover-edges-down-underlying-sales-rise-confirms-fy25-outlook
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