Unilever Q3 2025: steady growth, sharper focus, and the Ice Cream spin draws near
Unilever’s third quarter shows a business edging forward on the metrics that matter while getting its house in order for the Ice Cream demerger. Underlying sales growth (USG) came in at 3.9%, with 1.5% from volume and 2.4% from price. Power Brands – now 78% of turnover – grew 4.4% with 1.7% volume. Turnover declined by (3.5)% to €14.7 billion, mainly because of a hefty currency drag of (6.1)% and (1.0)% from net disposals.
Management kept full year guidance intact and said the Ice Cream demerger remains on track for completion in Q4 2025, despite a timetable tweak linked to the US federal government shutdown. The quarterly dividend is up 3% year on year.
Quick takeaways for investors
- USG 3.9% – volumes up 1.5%, prices up 2.4%. Excluding Ice Cream, USG was 4.0% with 1.7% volume.
- Turnover €14.7 billion, down (3.5)% vs Q3 2024 due to currency (6.1)% and net disposals (1.0)%.
- Power Brands grew 4.4% – a good mix of volume and price.
- Dividend set at €0.4528 per share (£0.3928), up 3.0% vs Q3 2024. Record date 7 November, payment 5 December 2025.
- Full year 2025 outlook unchanged: USG 3% to 5%. H2 margins of at least 18.5% – or at least 19.5% excluding Ice Cream.
- Ice Cream Demerger expected to complete in Q4 2025; Unilever to retain c.19.9% stake for up to five years.
The quarter by the numbers
| Metric | Q3 2025 |
|---|---|
| Turnover | €14.7bn, (3.5)% vs 2024 |
| USG | 3.9% (UVG 1.5%, UPG 2.4%) |
| USG excluding Ice Cream | 4.0% (UVG 1.7%, UPG 2.2%) |
| Currency impact | (6.1)% |
| Net acquisitions/disposals | Acquisitions 0.5%, disposals (1.6)% |
| Power Brands | USG 4.4% (volume 1.7%, price 2.6%) |
| Dividend | €0.4528 per share (£0.3928) – up 3.0% YoY |
Definitions: USG is underlying sales growth, UVG is underlying volume growth, and UPG is underlying price growth. These strip out currency and M&A effects to show underlying momentum.
Business group performance – beauty leads, ice cream price-led
| Business Group | Q3 Turnover | USG | UVG | UPG |
|---|---|---|---|---|
| Beauty & Wellbeing | €3.2bn | 5.1% | 2.3% | 2.7% |
| Personal Care | €3.3bn | 4.1% | 1.0% | 3.1% |
| Home Care | €2.8bn | 3.1% | 2.5% | 0.6% |
| Foods | €3.1bn | 3.4% | 1.3% | 2.1% |
| Ice Cream | €2.3bn | 3.7% | 0.0% | 3.7% |
Beauty & Wellbeing accelerated, helped by double-digit showings from Dove hair, Vaseline, Liquid I.V., Nutrafol, Hourglass and K18. Personal Care grew 4.1% with Dove’s premium innovations doing the heavy lifting. Home Care improved with 2.5% volume growth – Cif and Domestos were standouts. Foods saw good momentum from Hellmann’s and recovery in parts of Asia Pacific Africa.
Ice Cream grew 3.7%, entirely price-led with flat volumes as it lapped a tougher comparator. Cornetto delivered high-single-digit growth, while Ben & Jerry’s grew mid-single digit. This division is being prepared for life outside the group.
Geographies – US strength, Latin America soft, India transitory
- North America: 5.5% USG and 5.4% volume – volume-led growth in Personal Care and Beauty & Wellbeing, with Foods up low-single digit.
- Europe: 1.1% USG with volumes at (0.6)%. UK and France grew, Germany cooled after a strong prior year.
- Latin America: down (2.5)% with volumes (7.3)% on volatile markets. Brazil laundry remains a drag as pricing resets, though aimed at restoring competitiveness.
- Asia Pacific Africa: 6.8% USG with 3.5% volume. India grew 2% after Goods and Services Tax reforms dampened sales temporarily. China posted low-single-digit growth. Indonesia returned strongly with 12.7% growth.
The currency hit is the main reason reported turnover fell. Under the bonnet, volumes are moving in the right direction, especially in developed markets where volumes rose 2.7%.
Ice Cream Demerger – what you will receive and why it matters
The plan is to separate The Magnum Ice Cream Company (TMICC) in Q4 2025, subject to final timetable clearance. Preparations are on track, though the schedule was revised owing to the US federal government shutdown. On completion:
- Qualifying shareholders get one TMICC share for every five Unilever shares held. The same 1-for-5 applies to ADS holders.
- Unilever will retain c.19.9% of TMICC for up to five years, selling down over time to cover separation costs and reduce net debt.
- Unilever expects to consolidate its share capital after dealings in TMICC start – this is designed to keep share price, EPS and DPS comparable before and after the split.
- Ice Cream is expected to be reported as a discontinued operation from Q4.
Why it matters: removing a more seasonal, lower-margin division should leave a simpler Unilever with a structurally higher margin profile and a tighter focus on Beauty, Wellbeing and Personal Care – segments where it is leaning into premiumisation and digital commerce.
Margins, productivity and capital moves
Management reiterated an improvement in underlying operating margin for 2025, with H2 margins of at least 18.5% – or at least 19.5% excluding Ice Cream – a material step up on H2 2024. The productivity programme launched in 2024 is ahead of plan on targeted €800 million savings. Around €650 million of savings are expected by end 2025, with the remaining €150 million in 2026. Restructuring costs are now expected to be around 1.2% of turnover for 2025.
On portfolio actions, September saw the acquisition of Dr. Squatch in Personal Care and the sale of The Vegetarian Butcher. The dividend signal is steady: €0.4528 per share this quarter – up 3.0% year on year – with a Q4 dividend still anticipated even if the demerger completes in the quarter.
My read on the print – balanced progress, clear catalysts
This is a good-quality quarter. The mix is improving, volumes are recovering, and Power Brands are doing what they should. North America’s 5.5% growth with robust volumes is a standout. Emerging markets are improving sequentially, with Indonesia back in growth and early signs of traction in China. The unchanged guidance and firmer H2 margin targets add credibility.
There are blemishes. Latin America is weak and volumes are negative. India’s 2% is soft, albeit driven by Goods and Services Tax reforms that should normalise from November. Europe is growing but still seeing slight volume pressure. And currency remains an unavoidable headwind for reported turnover.
Net-net, the investment case is tightening: a simpler, more premium Unilever with better margins if the TMICC spin lands cleanly. Watch for confirmation of demerger dates, the post-spin share consolidation mechanics, progress in Latin America, and whether volumes keep building into Q4.
Dates and links
- Q3 dividend timetable: record date 7 November 2025, payment 5 December 2025.
- Q4 and FY 2025 results: 12 February 2026.
- Webcast replay and slides: Unilever latest results.
- Presentation filed at the FCA: National Storage Mechanism.
