Unilever announced on Thursday, February 12, a modest increase in annual profits following the separation of its ice cream business. However, the British consumer goods giant flagged expectations of “slower market conditions” for 2026.
Net profit from brands retained at the end of 2025 advanced 4.6 percent to 5.7 billion euros (USD 6.8 billion), Unilever said in a statement, while revenue slipped 3.8 percent to 50.5 billion euros.
“In 2025 we became a simpler, sharper, and faster Unilever,” CEO Fernando Fernandez said in a statement. “We are moving at speed to build a business that drives desire at scale in our brands, execution excellence across all channels and cost discipline.”
Focus on beauty and personal care
Looking ahead to 2026, Fernandez said he has set “clear priorities for growth,” with a strong focus on “Beauty, Wellbeing and Personal Care”, as well as on “premium segments and digital commerce.” He also aims to strengthen the group’s growth in the United States and India.
Unilever expects 2026 growth to be “at the bottom end of the underlying sales growth range reflecting the slower market conditions.” However, Fernandez said that “despite slowing markets, our sharper focus and disciplined execution underpin our confidence for 2026 and beyond”.
Unilever, whose major brands include Dove soap, Cif surface cleaner and Hellmann’s mayonnaise, is undergoing a turnaround to boost its performance. The group completed the demerger of Magnum Ice Cream, which includes the Ben & Jerry’s brand, in December. Changes at Unilever in 2025 included job cuts and bringing in Fernandez, who took over as CEO last March having served as the company’s chief financial officer.
“In Western markets Unilever faces pressure from people trading down to unbranded alternatives,” AJ Bell head of markets Dan Coatsworth said after the results update. “This is why emerging markets have been a key source of growth for Unilever.”
As well as overseeing the spinoff, he has focused on growing sales in the United States and India, and on prioritizing its personal care and beauty divisions.
Fernandez took over from Hein Schumacher, who spent less than two years in the role, during which time the company posted two sets of disappointing annual results.
