Unilever reports sales growth in Q3, reaffirms outlook

Investing.com -- Consumer goods maker Unilever Plc (LON:ULVR) on Thursday reported a 3.9% rise in underlying sales for the third quarter of 2025, supported by balanced volume and pricing growth across divisions, and reaffirmed its full-year outlook as it prepares to complete the spin-off of its Ice Cream unit in the fourth quarter.

Turnover fell 3.5% to €14.7 billion due to a 6.1% currency impact and a 1% hit from disposals. Volume rose 1.5% and pricing added 2.4%. Excluding Ice Cream, underlying sales grew 4%. 

Chief executive Fernando Fernandez said the company “continued to outperform in developed markets in the third quarter,” adding that Unilever “stepped up our emerging markets performance with a return to growth in Indonesia and China. Growth was broad based across all Business Groups and driven by our Power Brands.”

In the statement, Fernandez said performance excluding Ice Cream “showed good sequential improvement,” noting that the separation will “create a simpler Unilever, with a sharper focus and structurally higher margin profile.”

The London Stock Exchange listed company said Power Brands contributed 78% of group turnover, rising 4.4% in underlying sales with 1.7% volume growth.

By division, Beauty & Wellbeing led growth with a 5.1% increase, including 2.3% from volume and 2.7% from price.

Personal Care rose 4.1%, with volume up 1% and price up 3.1%. Foods advanced 3.4% on 1.3% volume growth and 2.1% price gains, while Home Care increased 3.1%, led by 2.5% volume growth. Ice Cream posted a 3.7% gain, driven by pricing as volume remained flat.

Developed markets, which account for 44% of turnover, grew 3.7%, with strong performance in North America, where underlying sales climbed 5.5%.

Europe rose 1.1% against a strong prior-year comparator. Emerging markets, making up 56% of turnover, advanced 4.1%, with 0.6% from volume and 3.5% from price. 

Indonesia returned to double-digit growth at 12.7%, while India rose 2% and China achieved low single-digit growth.

Unilever confirmed the planned demerger of its Ice Cream business into The Magnum Ice Cream Company (TMICC).

It will retain a 19.9% stake for up to five years following completion and expects a share consolidation after the separation to maintain earnings and dividend comparability.

The company declared a quarterly dividend of €0.4528 per share, up 3% from the same period last year. 

Unilever maintained its full-year outlook for underlying sales growth between 3% and 5% and said it expects an improvement in underlying operating margin to at least 19.5%, excluding Ice Cream.

Unilever said its €800 million productivity program launched in 2024 remains ahead of schedule, with €650 million in savings expected by the end of 2025. 

It also cited portfolio changes, including the acquisition of men’s grooming brand Dr. Squatch and the sale of The Vegetarian Butcher.