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1. Company Snapshot

1.a. Company Description

Unilever PLC operates as a fast-moving consumer goods company.It operates through Beauty & Personal Care, Foods & Refreshment, and Home Care segments.The Beauty & Personal Care segment provides skin care and hair care products, deodorants, and skin cleansing products.


The Foods & Refreshment segment offers ice cream, soups, bouillons, seasonings, mayonnaise, ketchups, and tea categories.The Home Care segment provides fabric solutions and various cleaning products.The company offers its products under the Domestos, OMO, Seventh Generation, Ben & Jerry's, Knorr, Magnum, Wall's, Bango, the Vegetarian Butcher, Axe, Cif, Comfort, Dove, Lifebuoy, Lux, Rexona, Sunsilk, Equilibra, OLLY, Liquid I.V., SmartyPants, Onnit, Hellmann's, and Vaseline brands.


Unilever PLC was incorporated in 1894 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on ULVR

Unilever's recent performance has been driven by several positive factors. The company's decision to simplify its business structure by selling off non-core assets and refocusing on core brands has garnered attention. This move is expected to sharpen its portfolio for long-term growth and scalability. Additionally, Unilever has confirmed the sale of Graze to Katjes International, further streamlining its operations. The company is also investing in its supply chain, with a $438 million program to revamp its infrastructure as it splits from Unilever. This includes a $66 million investment in its factory in Gloucester, West England, which will increase capacity by half from 2027 levels. Furthermore, Unilever is expanding its food factory in Poland, investing over 100m zlotys ($27.5m) into the site. The company's focus on innovation is also evident, with Vaseline pioneering a social-first, innovation-led marketing playbook that Unilever wants to replicate across its portfolio. This approach is expected to drive growth and engagement with consumers.

1.c. Company Highlights

2. Unilever's 2025 Earnings: A Resilient Performance

Unilever reported a solid full-year 2025 performance, with underlying sales growth of 3.5%, driven by a combination of 1.5% volume growth and 2% price growth. The company's turnover for the full year was EUR 50.5 billion, down 3.8% versus the prior year due to significant currency headwinds. Excluding currency, turnover increased by 2.3%. Underlying operating margin expanded by 60 basis points to 20% in 2025, reflecting a structurally strong margin profile. Unilever's underlying EPS rose to EUR 3.08, a 0.7% increase, with currency having a negative impact of 8.8% on underlying earnings per share. On a constant currency basis, underlying earnings per share grew by 9.5%. The actual EPS came out at EUR 1.51, beating estimates of EUR 1.41.

Publication Date: Feb -13

📋 Highlights
  • Sales Growth & Portfolio Strength:: Underlying sales grew 3.5% (30 Power Brands at 4.3%), driven by 2.2% volume growth and 2% pricing, with Beauty & Wellbeing achieving double-digit growth for key brands.
  • Turnover & Currency Impact:: Turnover fell 3.8% to EUR 50.5 billion due to currency headwinds, but rose 2.3% excluding currency, supported by 3.5% underlying sales growth.
  • Margin Expansion & Savings:: Operating margin expanded 60 basis points to 20%, aided by EUR 800 million in productivity savings (EUR 670M achieved in 2025) and gross margin growth of 330 bps over three years.
  • Emerging Markets Momentum:: Emerging markets grew 3.5% (accelerating to 5.8% in Q4 2025), outpacing developed markets (3.6%), with strong performance in Foods and North America (3.8% growth).
  • Capital Allocation & Returns:: Free cash flow hit EUR 5.9 billion (100% conversion), net debt fell EUR 1.4 billion post-Ice Cream demerger, and EUR 6 billion was returned to shareholders via dividends and buybacks.

Segment Performance

Beauty & Wellbeing delivered balanced growth across the year, with underlying sales growth of 4.3%. Dove, Vaseline, and the company's premium brands continued to outperform, delivering double-digit growth. Home Care delivered underlying sales growth of 2.6% for the year, with growth primarily being volume-led. In Foods, Unilever delivered balanced growth across developed and emerging markets, with underlying sales growth of 2.5%. The company's Power Brands, which represent more than 78% of the group turnover, continued to grow ahead of the average, delivering 4.3% underlying sales growth for the full year.

Guidance and Outlook

Unilever expects underlying sales growth at the bottom end of its multiyear range of 4% to 6% in 2026, with underlying volume growth of at least 2%. The company is optimistic about emerging markets in 2026, with growth in Asia Pacific, Africa, and India. Unilever has made significant progress in strengthening its relationship with retailers and has a good start in North America in 2026. Analysts estimate next year's revenue growth at 4.1%, which is slightly above Unilever's guidance.

Valuation

Unilever's current valuation metrics indicate a P/E Ratio of 40.02, P/B Ratio of 8.54, and EV/EBITDA of 18.81. The company's ROE stands at 20.11%, and its ROIC is 7.66%. The Net Debt / EBITDA ratio is 3.22, indicating a relatively stable leverage position. The Dividend Yield is 3.26%, providing a relatively attractive return for income investors. These metrics suggest that Unilever's stock price has factored in a significant level of growth, and the company's ability to deliver on its guidance will be crucial in determining its future valuation.

3. NewsRoom

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Is Unilever a Hidden Opportunity After Its Latest Portfolio Reshaping and Cost Discipline Push?

Dec -06

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Unilever to invest in food factory expansion in Poland

Dec -04

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Ben & Jerry’s Foundation comes under TMICC “governance” microscope

Dec -04

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Ben & Jerry’s pro-Gaza stance risks derailing £7bn spin-off

Dec -04

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Audit flags governance gaps at Ben & Jerry’s Foundation

Dec -03

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Unilever confirms sale of Graze to Katjes International

Dec -01

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Bank of America Securities Remains Bullish on Unilever PLC (UL)

Nov -28

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Katjes Group ‘in talks to buy Graze from Unilever’

Nov -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.71%)

6. Segments

Personal Care Business (Excl. Beauty & Wellbeing Business)

Expected Growth: 2.5%

The Personal Care Business (excl. Beauty & Wellbeing) growth of 2.5% is driven by premiumization trends, innovation in hygiene products, and expanding distribution channels. Unilever's focus on sustainability and digital transformation also contribute to its growth. Price increases and mix improvement further support this growth, offsetting raw material inflation and currency fluctuations.

Beauty & Wellbeing Business

Expected Growth: 3.5%

The Beauty & Wellbeing business from Unilever PLC grew 3.5% due to increasing demand for sustainable and natural products, strong brand portfolio (e.g., Dove, Axe), and expanding e-commerce capabilities. Consumers' focus on self-care and wellness also drove growth, with sales boosted by premiumization and innovation in skincare and haircare categories.

Foods

Expected Growth: 2.0%

Unilever's food segment growth of 2.0 is driven by increasing demand for sustainable and healthy food options, innovation in emerging markets, and price increases. The company's diverse portfolio, including brands like Knorr and Lipton, and strategic acquisitions have also contributed to growth. Operational efficiencies and cost savings have helped maintain profitability.

Ice Cream

Expected Growth: 2.8%

Unilever's ice cream segment growth of 2.8% is driven by premiumization, innovation, and expanding presence in emerging markets. Brands like Magnum and Ben & Jerry's have contributed to growth through premium offerings and unique flavors. Increasing demand for take-home ice cream and strategic pricing have also supported segment growth.

Home Care

Expected Growth: 2.8%

Unilever's Home Care segment growth of 2.8% is driven by increasing demand for cleaning and hygiene products, expansion into emerging markets, and innovation in product offerings. The segment's growth is also attributed to the company's focus on sustainability and eco-friendly products, which resonates with environmentally conscious consumers.

7. Detailed Products

Dove Soap

A personal care product that provides moisturizing and nourishing properties for skin care

Axe Body Spray

A personal care product that provides long-lasting fragrance and confidence for young men

Knorr Soup

A food product that offers a range of flavors and nutrients for a quick and easy meal solution

Magnum Ice Cream

A frozen dessert that provides a rich and indulgent treat for ice cream lovers

Suave Hair Care

A personal care product that provides affordable and effective hair care solutions for budget-conscious consumers

Vaseline Petroleum Jelly

A personal care product that provides moisturizing and protective properties for skin care

Hellmann's Mayonnaise

A food product that offers a range of flavors and uses for cooking and food preparation

Lipton Tea

A beverage product that provides a range of flavors and health benefits for tea drinkers

Rexona Deodorant

A personal care product that provides long-lasting protection and confidence for active individuals

Becel Margarine

A food product that offers a healthier alternative to traditional butter and margarine

8. Unilever PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Unilever PLC operates in various consumer goods sectors such as beauty, personal care, and home care. While there are substitutes available for some of its products, the company's strong brand portfolio and diversified product range reduce the threat of substitutes. However, the increasing popularity of private label brands and natural/alternative products pose a moderate threat.

Bargaining Power Of Customers

Unilever PLC has a large and diversified customer base across various channels, including retail, foodservice, and industrial. The company's strong brand portfolio and wide product range reduce customer bargaining power. Additionally, many customers are small to medium-sized businesses, which have limited negotiating power.

Bargaining Power Of Suppliers

Unilever PLC sources raw materials from various suppliers globally. While the company has a large and diversified supplier base, some suppliers may have significant bargaining power due to the uniqueness of their products or limited alternatives. However, Unilever's scale and negotiating power help to mitigate this risk.

Threat Of New Entrants

The consumer goods industry has high barriers to entry, including significant marketing and advertising expenses, high distribution costs, and strict regulations. Unilever PLC's strong brand portfolio, extensive distribution network, and economies of scale make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The consumer goods industry is highly competitive, with many established players competing for market share. Unilever PLC competes with other large multinational companies such as Procter & Gamble, Nestle, and Reckitt Benckiser. The high level of competition leads to significant marketing and advertising expenses, price competition, and innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.53%
Debt Cost 5.08%
Equity Weight 39.47%
Equity Cost 5.75%
WACC 5.34%
Leverage 153.35%

11. Quality Control: Unilever PLC passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Reckitt Benckiser

A-Score: 6.0/10

Value: 1.3

Growth: 5.4

Quality: 5.4

Yield: 6.2

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Unilever

A-Score: 5.6/10

Value: 1.7

Growth: 4.4

Quality: 4.9

Yield: 7.5

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Henkel

A-Score: 5.5/10

Value: 5.7

Growth: 4.0

Quality: 6.9

Yield: 5.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Essity

A-Score: 5.5/10

Value: 4.8

Growth: 5.6

Quality: 5.7

Yield: 5.6

Momentum: 1.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
L'Oréal

A-Score: 5.3/10

Value: 1.7

Growth: 5.8

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Beiersdorf

A-Score: 4.1/10

Value: 1.9

Growth: 5.4

Quality: 6.4

Yield: 1.2

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

53.97$

Current Price

53.97$

Potential

-0.00%

Expected Cash-Flows