In This Article:
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Underlying Sales Growth: 4.2%, with volume growth of 2.9% and price growth of 1.3%.
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Gross Margin: Increased by 280 basis points to 45%.
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Underlying Operating Profit: EUR11.2 billion, up 12.6% from the previous year.
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Underlying Earnings Per Share: EUR2.98, up 14.7%.
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Free Cash Flow: EUR6.9 billion.
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Net Debt: EUR24.5 billion, with net debt to underlying EBITDA at 1.9 times.
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Brand and Marketing Investment: Increased by EUR0.9 billion to 15.5% of group turnover.
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Return on Invested Capital: Increased by 190 basis points to 18.1%.
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Capital Returns to Shareholders: EUR5.8 billion through dividends and buybacks.
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Beauty and Wellbeing Sales Growth: 6.5%, with volume growth of 5.1% and price growth of 1.3%.
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Personal Care Sales Growth: 5.2%, with volume growth of 3.1% and price growth of 2.1%.
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Home Care Sales Growth: 2.9%, with volume growth of 4%.
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Foods Sales Growth: 2.6%, with price growth of 2.4% and volume growth of 0.2%.
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Ice Cream Sales Growth: 3.7%, with volume growth of 1.6% and price growth of 2.1%.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Unilever PLC (NYSE:UL) executed its Growth Action Plan (GAP) with speed and discipline, leading to improvements across the company, including brand superiority and innovation scale.
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The company achieved a significant increase in gross margin, up by 280 basis points to 45%, exceeding pre-COVID levels in all business groups except Ice Cream.
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Underlying operating profit grew by 12.6% to EUR11.2 billion, supported by a 2.9% underlying volume growth across all business groups.
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Unilever PLC (NYSE:UL) returned EUR5.8 billion in capital to shareholders in 2024 through dividends and buybacks.
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The company is on track to complete the separation of its Ice Cream business by the end of 2025, which is expected to enhance focus and performance.
Negative Points
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The company anticipates a slower start to 2025 with subdued market growth in the near term, particularly affecting Q1 performance.
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Unilever PLC (NYSE:UL) faces challenges in China and Indonesia, with market weakness and the need for significant portfolio and brand proposition adjustments.
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Commodity inflation, particularly in cocoa and dairy, is expected to impact costs, necessitating price increases throughout 2025.
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Despite improvements, the company acknowledges that consistency in performance is not yet fully achieved, with more work needed to navigate turbulent market conditions.
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The restructuring program, while ahead of schedule, involves significant job reductions, with 7,500 roles expected to be cut by the end of 2025.