$ULVR (+1.79%) presented its figures for the fourth quarter and the full year 2025 today - with a result that at first glance does not quite meet expectations.
- Turnover (expected): 13.56 billion
- Turnover (reported): 12.59 billion
- EPS (expected): 1,66
- EPS (reported): 1,48
Despite the sales disappointment $ULVR (+1.79%) strong volume and price growth in the quarter (4.2% organic in Q4) as well as progress in the portfolio mix. Operating margin improved and free cash flow remained robust at c. €5.9bn with 100% cash conversion.
Outlook for 2026:
For 2026, management expects sales growth at the lower end of the target range of 4-6%, including at least 2% volume growth, and anticipates moderate margin improvements. At the same time, a new share buyback program of € 1.5 billion was announced and Unilever reiterates its focus on attractive, growing dividends.
I will continue to monitor the following points for myself:
- Sales miss vs. expectations: significant sales shortfall despite operational progress
- Margin development & cash flow: solid, despite difficult currency and market conditions.
- Economic environment: exchange rates, demand in various regions (e.g. Latin America).
How do you assess these results and the outlook? Is this just a temporary blip or an indication of structural challenges in the consumer goods sector?
