Unilever PLC (LSE:ULVR) kept its 2025 guidance unchanged and said it continued to outperform in developed markets in the third quarter, helped by stronger volumes in North America and a steadier showing in Europe.
The consumer goods group still expects underlying sales growth of 3% to 5% for the year, with the second half ahead of the first, and a higher operating margin.
It is guiding to second-half margins of at least 18.5%, or at least 19.5% excluding Ice Cream. The company also reconfirmed that the planned demerger of the business in 2025, although the process has been slowed by the shutdown of the US stock market regulator.
Unilever said the Ice Cream separation, creating The Magnum Ice Cream Company, will make the group simpler and lift margins.
Looking at the broader group, third-quarter underlying sales rose 3.9% to €14.7 billion, made up of 1.5% volume growth and 2.4% pricing. Excluding Ice Cream, growth was 4.0% with a stronger contribution from volumes.
Turnover fell 3.5% year on year, which Unilever said reflected currency movements and portfolio disposals. The quarterly dividend was set at €0.4528, up 3% on a year ago.
Developed markets, which account for 44% of group sales, grew 3.7% in the quarter. North America led the way with underlying sales up 5.5%, almost all from higher volumes, supported by Personal Care and Beauty & Wellbeing.
Europe grew 1.1% against a tough comparison last year, with Home Care again the bright spot. Emerging markets, 56% of sales, improved to 4.1% growth, with volumes back in positive territory, although Latin America shrank in difficult trading conditions.
Chief executive Fernando Fernandez said: “We continued to outperform in developed markets in the third quarter, led by our strong innovation programme, and, following decisive interventions, stepped up our emerging markets performance with a return to growth in Indonesia and China.
"Growth was broad-based across all business groups and driven by our Power Brands.”
He added: “Our performance excluding Ice Cream showed good sequential improvement, with a step up in volume growth. We expect to complete the Demerger of the Ice Cream business by the end of the year.”
Beauty & Wellbeing grew 5.1% in the quarter, helped by brands such as Dove hair, Vaseline, Liquid I.V., Nutrafol, Hourglass and K18.
Personal Care rose 4.1% as Dove’s premium deodorants and skin cleansing lines continued to land well. Home Care was up 3.1%, with double-digit gains for Cif and Domestos.
Foods grew 3.4% on strong momentum at Hellmann’s. Ice Cream advanced 3.7%, driven by price as it lapped a higher volume period last year.