Unilever reports 20.0% underlying operating margin for 2025

The Tip Desk · March 12, 2026 · 1 min read

The consumer goods company generated turnover of €50.5 billion in 2025

Unilever Plc (ULVR), the consumer goods company, reported an underlying operating margin of 20.0% for 2025, up from 19.4% in 2024. The company generated turnover of €50.5 billion, operating profit of €9.0 billion, and net profit of €6.2 billion.

Underlying sales growth (USG) was 3.5% in 2025, a decrease from 4.3% in 2024 and 7.7% in 2023. The company said this performance reflected a sequential improvement in the second half of the year against a backdrop of slowing markets. Growth was led by Power Brands, which delivered 4.3% USG and now account for 78% of turnover.

Regional performance varied, with the US continuing to outperform the market and improvements seen in India and key emerging markets such as China and Indonesia. Dove Beauty grew double-digit in the US in 2025. Latin America had a challenging year.

Profitability gains were driven by a gross margin increase to 46.9%, which the company attributed to positive mix, volume leverage, and productivity initiatives. This structural improvement, combined with overhead control, supported the rise in underlying operating margin. Free cash flow for the year was €5.9 billion, compared to €6.3 billion in 2024.

Unilever expects underlying growth for full-year 2026 to be within its multi-year guidance range of 4% to 6%, with at least 2% underlying volume growth. The company anticipates growth will be at the bottom end of that range due to slower market conditions.

Management expects a modest improvement in underlying operating margin for the full year 2026. The company said markets will likely remain subdued in 2026.