Strong Consumer Demand in North America Boosts Unilever's (UL.US) Q3 Core Sales Beyond Expectations

Stock News
Oct 23, 2025

According to sources, Unilever (UL.US) reported third-quarter sales that surpassed expectations, driven by robust demand in developed markets, particularly in North America, and effective cost control measures. The company announced on Thursday that its core product sales grew by 3.9% year-over-year, slightly exceeding analysts' predictions of 3.7%. Operating income decreased by 3.5% to €14.7 billion, impacted by foreign exchange fluctuations and asset disposals, which negatively affected the results by 6.1% and 1%, respectively. However, sales volume rose by 1.5%, with prices increasing by 2.4% (higher than analysts' expectation of 2.2%). Excluding the ice cream segment, core sales increased by 4%. By segment, beauty and health product sales led with a 5.1% increase, driven by a 2.3% rise in sales volume and a 2.7% rise in prices. Personal care product sales grew by 4.1%, with sales volume up 1% and prices up 3.1%. Food product sales increased by 3.4%, with a 1.3% rise in sales volume and a 2.1% rise in prices. Home care product sales rose by 3.1%, with sales volume up 2.5%. Ice cream product sales increased by 3.7%, driven by higher prices, while sales volume remained flat. Unilever is currently undergoing a transformation led by CEO Fernando Fernandez, who is phasing out underperforming brands to focus on products and segments with greater growth potential. These initiatives are part of a broader restructuring plan initiated by former CEO Hein Schumacher, who departed earlier this year. The plan includes a proposed spin-off of Unilever's ice cream business due to a long-term decline in market share and high production costs. Unilever announced on Tuesday that the proposed spin-off plan has been delayed by about a month due to the U.S. government shutdown, which hindered the completion of registration procedures for the New York Stock Exchange. In recent years, the company has shifted its focus toward high-margin premium products through innovation and acquisitions, particularly in beauty and personal care, while also actively seeking growth opportunities in key markets such as India and the U.S. Unilever reiterated its full-year performance expectations, stating that core sales are expected to grow between 3% and 5%. The company also announced a quarterly dividend of €0.4528 per share, an increase of 3% from the same period last year. For more significant Hong Kong stock news, download the Zhitong Finance app. For more Hong Kong and overseas wealth management information, please visit www.zhitongcaijing.com (search for "智通财经"); to join the Zhitong Hong Kong stock investment group, please add the Zhitong customer service WeChat (ztcjkf).

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