Unilever reports revenue growth in the first quarter of 2025
Unilever achieved an underlying revenue growth of 3% in the first quarter of 2025, driven by volume growth of 1.3% and price increases of 1.7%. Despite this growth, total revenue fell by 0.9% to €14.8 billion, attributed to negative currency effects and structural challenges.
Key aspects of the Q1 results
- Developed markets: Strong growth of 4.5%, driven by premium brands and effective pricing management.
- Emerging markets: Challenges in countries like Brazil, China, and Indonesia impacted performance due to high interest rates and weak demand.
- Power brands: These showed solid growth of 3%, highlighting the resilience of the core portfolio.
Implications for investors
- Currency risks: The discrepancy between organic growth and revenue decline highlights vulnerability to currency fluctuations, particularly relevant for international portfolios.
- Margin targets: Unilever aims for a normalization of the gross margin to up to 45%, which is seen as a sign of long-term stability.
- 2025 outlook: Despite macroeconomic uncertainties, Unilever reaffirms its target of underlying growth of 3–5%.
The strong performance in developed markets makes the stock an attractive defensive position in volatile times. However, the mixed results in emerging markets require continued close monitoring of global trade dynamics.