Unilever reported stronger-than-expected third-quarter sales growth on Thursday, supported by robust demand for its beauty and personal care products in North America and emerging markets. The company maintained its annual outlook despite global economic uncertainty.
The owner of Dove and Hellmann’s has shifted its strategy in recent years toward high-margin premium products through innovation and acquisitions. Its focus remains on expanding in key markets such as India and the United States, where beauty and wellbeing demand continues to rise.
Under new CEO Fernando Fernandez, who took charge in March, Unilever has been streamlining operations, cutting costs, and aiming to strengthen profit margins. Fernandez said the company is building a brand portfolio “for the future,” emphasizing beauty, wellbeing, and digital commerce, with growth anchored in the U.S. and India.
Earlier this week, Unilever delayed the planned spin-off of its Magnum-led ice cream division, originally scheduled for November 10, citing the U.S. government shutdown. The company still expects to complete the separation by year-end, calling it a key milestone for its restructuring plans.
The ice cream business — which includes Ben & Jerry’s and Cornetto — achieved 3.7% sales growth during the quarter. Across all divisions, overall sales grew above 3%, while the beauty and wellbeing unit rose 5.1%.
Growth in North America reached 5.5%, driven by personal care and beauty demand. China and Indonesia also returned to positive sales momentum.
Unilever posted underlying sales growth of 3.9%, surpassing analyst expectations of 3.7%. Pricing growth came in higher than forecast at 2.4%, compared to the expected 2.2%.
The company said it remains on track to deliver €800 million in savings and expects lower restructuring costs, around 1.2% of turnover, in 2025.
