Unilever Delivers Resilient Q1 Performance, Reaffirms Full Year Guidance
Why we think this is neutral
Unilever's Q1 2025 trading update shows a mixed performance, with a slight decline in revenue offset by the company's reaffirmation of its full year outlook. While the report highlights some near-term challenges in certain markets, the overall tone is one of resilience and confidence in the company's ability to deliver on its plans for the year. The lack of specific profit or EBITDA guidance makes it difficult to assess the underlying profitability, but the continued investment in the business and the share buyback program suggest a stable financial position.
Key Points
- Q1 2025 underlying sales growth of 3.0%, with 1.3% volume growth and 1.7% price growth
- Turnover declined (0.9)% to €14.8 billion, impacted by disposals and currency
- Full year 2025 outlook reconfirmed, with 3-5% underlying sales growth and modest margin improvement
- Productivity program ahead of plan, delivering €550 million savings by end 2025
- Ice Cream separation on track, with Capital Markets Day planned for September ahead of Q4 demerger
- Ongoing €1.5 billion share buyback program to be completed in first half of 2025
Summary
Unilever PLC has reported its Q1 2025 trading update, showing a resilient performance with underlying sales growth of 3.0%. However, turnover declined (0.9)% to €14.8 billion, as underlying sales growth was more than offset by disposals and currency impacts.
The company reconfirmed its full year 2025 outlook, expecting underlying sales growth of 3-5% and a modest improvement in underlying operating margin. While the report highlights some near-term challenges in certain markets, the overall tone is one of confidence in the company's ability to deliver on its plans for the year.