Unilever Shares Soar 3.05% on Strong Sales Growth

Unilever's stock surged 3.05% in pre-market trading on August 1, 2025, reflecting strong investor sentiment following the company's recent earnings report.

Unilever reported a 3.4% underlying sales growth for the first half of 2025, driven by robust performance in key regions such as North America and Asia Pacific Africa. The company's balanced approach, combining volume and price increases, contributed to this growth. Notably, the second quarter saw an impressive 3.8% underlying sales growth, surpassing analyst expectations.

Despite the sales growth, Unilever faced challenges in profitability. Underlying operating profit fell by 4.8% to €5.8 billion, and reported operating profit dropped by 10.6% to €5.3 billion. The decline was attributed to adverse currency movements, net disposals, and higher working capital requirements, particularly due to the separation costs of the Ice Cream business.

Unilever's strategic initiatives, including a €1.50 billion share buyback and a 3% increase in the quarterly dividend, aimed to enhance shareholder value. The company also highlighted cumulative savings of around €650 million under its productivity program, demonstrating its commitment to operational efficiency.

Looking ahead, Unilever expects underlying sales growth to be between 3% and 5% for the full year, with stronger growth anticipated in the second half. The company's focus on marketing and sales excellence, along with its strategic interventions in emerging markets, positions it for continued growth and margin expansion.