Unilever launches €1.5bn buyback as margins improve after ice cream split Proactive uses images sourced from Shutterstock
Unilever PLC has served up a €1.5 billion share buyback as the consumer good group reported improved sales momentum and expanding profit margins in 2025 after it spun off its ice cream arm.
The owner of brands ranging from Marmite, Hellmans and Pot Noodle to Persil, Dove and Lynx posted results showing underlying sales growth was 3.5% for the year, with volumes up 1.5%. This was thanks to a stronger fourth quarter, where USG rose 4.2% and volumes 2.1%.
Statutory turnover fell 3.8% over the year to €50.5 billion, reflecting a 5.9% currency headwind and a 1.2% impact from other smaller disposals. This excludes the impact of the Magnum Ice Cream split.
Underlying operating profit fell 1.1% to €10.1 billion, even though underlying operating margin widened by 60 basis points to 20.0%, driven by tighter overhead control.
Underlying earnings per share increased 0.7% to €3.08, while diluted earnings per share rose 6.2% to €2.59.
Free cash flow was €5.9 billion, down €0.4 billion mainly due to demerger costs. The quarterly dividend was set at €0.4664 per share, up 3%.
Chief executive Fernando Fernandez said: “In 2025 we became a simpler, sharper, and faster Unilever, delivering our commitment to volume growth, positive mix and strong gross margin.”
For 2026, the group expects underlying sales growth of between 4% and 6%, with at least 2% volume growth, and a modest margin improvement.