Unilever has stated that it has become a "simpler, sharper and faster" firm in 2025, as its underlying sales growth increased by 3.5% in the year to 31 December.

The consumer goods group’s personal care division recorded 4.7% USG in this period, while its beauty and wellbeing section saw USG increase by 4.3%.

However, its turnover fell by 3.8% year-on-year to €50.5bn, as a result of currency impacts and disposals net of acquisitions.

Furthermore, its operating profit dropped by 1.1% in this period to €10.1bn, as currency headwinds more than offset strong operational delivery.

Chief executive officer at Unilever, Fernando Fernandez, said: "In 2025 we became a simpler, sharper, and faster Unilever, delivering our commitment to volume growth, positive mix and strong gross margin. Our underlying sales growth improved throughout the year as we landed a strong innovation plan, drove improvements in key emerging markets and successfully completed the Ice Cream demerger.

“We are moving at speed to build a business that drives desire at scale in our brands, execution excellence across all channels and cost discipline. We have set clear priorities for growth - building a brand portfolio for the future, with more Beauty, Wellbeing and Personal Care, prioritising premium segments and digital commerce, and anchoring our growth in the US and India.”

In its outlook for 2026, Unilever expects its underlying sales growth to be within its multi-year guidance range of between 4% and 6%, with at least 2% underlying volumes growth.

However, this growth is expected to be at the bottom end of its underlying sales growth range. The consumer goods firm said that this reflects “slower market conditions”.

Alongside these results, Unilever has announced the launch of a €1.5bn share buyback scheme, after returning €6bn to shareholders in 2025 through cash dividends and share buybacks.

Following the announcement, shares in Unilever dropped by over 1%.

Investment director at AJ Bell, Russ Mould, described Unilever’s 2025 results as "fine but not fantastic".

He concluded: "What's troublesome is an underwhelming outlook for 2026, with sales growth at the bottom end of the previously guided range. This reflects difficult market conditions. In Western markets Unilever faces pressure from people trading down to unbranded alternatives. This is why emerging markets have been a key source of growth for Unilever because alternatives don’t exist to anywhere near the same extent, if at all.

"However, even in developing parts of the world Unilever has been affected by uneven demand with certain areas of the business struggling in markets like China and Latin America.

"Having continued the process of reshaping and refocusing the business started under his predecessor Hein Schumacher, Fernandez will be under pressure to demonstrate the benefits of this strategy."

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