Underlying sales growth at Unilever jumped by 3% year-on-year in the first quarter of 2025, as the firm renewed its outlook for the rest of the year.

The British fast-moving consumer goods company recorded a 0.8% drop in its turnover, reaching €14.8bn, which includes a 2.7% fall from net disposals.

Unilever’s beauty and wellbeing sector was the best performing division, with sales growth increasing by 4.1%, with turnover jumping by 2.9% year-on-year to €3.3bn. The company’s largest brand, Dove, also recorded growth of over 8% in this period.

The firm said that its productivity programme, which launched in 2024 to simplify the business and evolve its category-focused business model, remains ahead of its plan to deliver €800m of savings.

However, this does include the reduction of 7,500 mainly office-based roles.

Chief executive officer at Unilever, Fernando Fernandez, said: "We have started the year with a resilient performance. First quarter underlying sales growth of 3% reflects the strength of our increasingly premium and innovation-led portfolio in developed markets. We have interventions in place in some emerging markets to step up growth in the remainder of the year."

Unilever has reconfirmed its 2025 full-year outlook, with underlying sales growth expected between its 3% to 5% range.

It also anticipates a "modest improvement" in its underlying operating margin for the full year, versus 18.4% in 2024.

Furthermore, the firm said its ongoing €1.5bn share buyback scheme is set to be completed in the first half of the year.

Fernandez added: "Heightened global macroeconomic uncertainty is a fact; however the quality of our innovation programme, the strong investment behind our brands and our improving competitiveness give us confidence we will deliver on our full year plans."

Investment director at AJ Bell, Russ Mould, concluded: "For years, Unilever has followed the theory that slow and steady wins the race and it has once again delivered another pedestrian performance.

"The recent change in leadership for the group suggested the board and/or shareholders felt that Unilever could move faster, and chairman Ian Meakins said at the time there was more to do. It’s interesting to see new boss Fernando Fernandez now say that Unilever is ‘moving at pace’ given the Q1 numbers do not support that statement.

"Patience is required and at least the current performance shows the business is moving forwards rather than backwards."

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