Unilever has reported a 3.2% drop in turnover to €30.1 billion for the first half of 2025, as profit margins were squeezed by costly disposals and adverse currency effects. The FTSE 100-listed group cited declines in underlying operating profit across most divisions.
Sales nonetheless increased by 3.4%, bolstered by a strong performance in Unilever’s ice cream unit. The division — soon to be spun off as The Magnum Ice Cream Company (TMICC) — posted turnover growth of 5.9% to €4.6 billion, though its underlying operating profit fell by 2.2%.
The spinout, expected to complete by mid-November, will include brands such as Magnum and Ben & Jerry’s. Unilever plans to retain a 20% stake in TMICC for up to five years. TMICC will be led by CEO Peter ter Kulve, with a triple listing in Amsterdam, London, and New York. Amsterdam will serve as the primary listing location.
Sales across Unilever’s other business segments — food, home care, personal care, and beauty — rose by 2.2%, 1.3%, 4.8%, and 3.7%, respectively. However, only food posted growth in underlying operating profit. Underlying earnings per share fell 2.1% to €1.59.
The group continues to pursue productivity gains, targeting €650 million in savings by the end of 2025, and a further €150 million in 2026. Restructuring costs associated with this programme reached €239 million in H1 2025 — marginally below the €248 million recorded a year earlier. Unilever expects full-year restructuring charges to total approximately 1.4% of turnover.
Free cash flow halved to €1.1 billion, down from €2.2 billion in the first half of 2024. The company attributed the decline to costs linked with the TMICC demerger and reduced profits.
CEO Fernando Fernandez commented: “Our first half performance positions us well for the full year. In the second half, we expect further acceleration in emerging markets, particularly in Asia, and sustained momentum in developed markets. We are on track to demerge Ice Cream by mid-November, with the operational separation now complete and competitive performance improving. Looking ahead, our priorities are clear: more Beauty & Wellbeing and Personal Care; disproportionate investment in the US and India; and, a sharper focus on premium segments and digital commerce.”
