Unilever’s turnover for the first half of 2025 has come in -3.2% compared to the prior year, delivering “subdued growth” in beauty.
The consumer goods giant’s turnover for the period came in at €30.1bn, with its underlying sales growth increasing 3.4%, balanced between volume (1.5%) and price (1.9%).
The group’s “continued outperformance in developed markets”, and the positive impact of its decisive interventions in emerging markets, was cited as reasons behind the modest sales growth.
The group’s power brands, such as Dove, are said to have contributed more than 75% of turnover.
Unilever said its currency impact during the first half – -4% from currency and -2.5% from disposals net of acquisitions – was primarily driven by Latin American currencies and the Turkish Lira depreciating against the Euro.
The depreciation of the US dollar against the Euro in the second quarter led to an elevated currency impact versus the first quarter.
The state of play in Unilever’s Beauty & Wellbeing division
Unilever’s Beauty & Wellbeing division, which represents 21% of the group’s overall turnover, delivered an underlying sales increase of 3.7% during this time.
This increase was led by the “continued strong performance” of Unilever’s wellbeing business, which it said “more than offset subdued growth in beauty”.
Wellbeing delivered “strong” double-digit growth for the 21st consecutive quarter, led by the performance of brands Liquid I.V. and Nutrafol.
Both brands expanded their household penetration and delivered successful multi-year innovations, such as Liquid I.V.’s sugar-free platform.
However, Unilever’s Skin Care business only delivered low single-digit growth, with performance varying across its brands and markets.
Household names Vaseline and Dove reported sales soaring by double-digits during this time, supported by product innovation and strong execution of campaigns.
However, this growth was “partially offset by declines in China and Indonesia, where we are resetting our business,” read a statement from Unilever.
Unilever’s Hair Care division came in flat, with low single-digit price offset by a decline in volume.
In this category, Dove grew mid single-digit, supported by a significant relaunch featuring its fibre repair technology and refreshed packaging.
But this growth was offset by a decline in Clear, which was impacted by the slow market growth in China.
Unilever also reported a volume decline in hair care brand TRESemmé.
The company’s Prestige Beauty division also came in flat, with Unilever claiming in its statement that “the prestige beauty market remained subdued”.
Make-up brand Hourglass, skin care range Tatcha, and hair care player K18 continued to grow double-digit, while skin care giants Paula’s Choice and Dermalogica both declined.
“In Beauty & Wellbeing, we focus on three key priorities: premiumising our core Hair and Skin Care portfolios by emphasising brand superiority; fuelling the growth of our Prestige Beauty & Wellbeing portfolios with selective international expansion; and continuing to strengthen our competitiveness through innovation and a social-first approach to consumer engagement,” read a statement from Unilever.
Personal care saves the day
Unilever’s Personal Care division was one of the group’s better performers, with underlying sales in this division soaring 4.8% – 1.4% from volume and 3.3% from price.
Body care favourite Dove was the star, delivering “growing high single-digit” sales growth, with strong volume and positive price.
However, its second quarter volumes were impacted by a decline in Latin America, “where significant share gains were offset by subdued markets”.
Unilever’s deodorant business increased by a low single-digit in H1 2025, with positive volume and price.
This was supported by Dove’s whole-body deodorants launch – a burgeoning category in beauty – in which the brand delivered double-digit growth.
Unilever's Skin Cleansing business, meanwhile, also grew by low single-digit, led by price.
This was driven in part by the “continued success” of its multi-year innovations, including Dove’s premium serum shower collection.
Lifebuoy, however, declined as volumes were impacted by commodity-driven price increases.
Oral Care also grew mid-single-digit, led by growth in Pepsodent and CloseUp.
Unilever’s Personal Care division’s underlying operating profit came in at €1.4bn, down -9.8% versus the prior year.
This included the impact from disposals such as Elida Beauty, which reduced Personal Care turnover by -5.8% in the first half.
The group’s underlying operating margin in this division decreased -90bps, as a slight improvement in gross margin was offset by a strong step-up in brand investment, particularly in the US and premium segments.
“In Personal Care, we focus on winning with science-led brands that deliver unmissable superiority to our consumers across deodorants, skin cleansing, and oral care,” read a statement from Unilever.
“Our priorities include developing superior technology and multi-year innovation platforms, leveraging partnerships with our customers, and expanding into premium areas and digital channels.”
Developed and emerging markets
Unilever’s developed markets, which make up 44% of the group’s turnover, continued to perform well, with underlying sales growth of 4.3% – with 3.4% from volume and 0.9% from price.
The second quarter of 2025 was the company’s fourth consecutive quarter of USG above 4% in developed markets.
“Volume growth was broad-based, with a strong performance in North America driven by Personal Care and Wellbeing, and volume growth in Europe led by Home Care,” read a statement from Unilever.
Emerging markets, which make up 56% of the group’s turnover, grew underlying sales 2.8%, with 0.2% from volume and 2.6% from price.
Underlying sales in India grew 4% on a consolidated basis, with underlying sales growth of 5% in the second quarter as market conditions “gradually improved while we continued to gain market share”.
China declined to low single digits in the first half, while Indonesia dropped -4.8%.
However, Unilever reported it saw “sequential improvement” from both in the second quarter of 2025 and expects both countries to “accelerate further” in the second half of the year.
Latin America grew 0.5%, with an acceleration of currency-related price increases impacting volumes.
Argentina’s growth, however, was offset by Brazil and Mexico as economic conditions continued to deteriorate in the first half.
“Our first half performance positions us well for the full year,” said Unilever CEO Fernando Fernandez.
“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.
“We are building a marketing and sales machine that drives desire at scale in our power brands, and ensures execution excellence across all channels to deliver consistent volume growth and gross margin expansion.”
For full-year 2025, Unilever is expecting underlying sales growth to be within 3% to 5%, with second half growth ahead of the first half despite subdued market conditions.
This will be supported by strength in developed markets and improving its performance in emerging markets, notably in India, Indonesia and China.
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