Unilever beats sales forecasts as ice cream split nears

Unilever also owns brands including Marmite and Dove (Alamy/PA) PA Media

Consumer goods giant Unilever reported stronger than expected underlying sales over the third quarter of 2025, boosted by improving consumer demand in North America and increased pricing. The Dove and Marmite maker is preparing to spin off its ice cream business by the end of the year.

Despite the positive underlying performance, total turnover declined 3.5% to 14.7 billion euros (£12.8 billion) compared with the same period last year. This decline was driven by a 6.1% hit from currency fluctuations and a 1% drop from disposals, including The Vegetarian Butcher brand.

However, underlying sales growth reached 3.9% year-on-year, with sales volumes across the group rising 1.5%. The growth was supported by both increased pricing and improved demand across key markets.

Strong beauty and personal care growth

Beauty and wellbeing sales accelerated to 5.1% over the quarter, including a 2.7% rise in prices. Strong performers included Dove hair products, Vaseline, Liquid IV and Nutrafol, which drove the division's robust performance.

The home care business also delivered strong results, with both Cif and Domestos reporting double-digit growth. Food sales grew by 3.4%, including a 2.1% rise in pricing, with Hellmann's reporting positive sales performance.

Ice cream demerger remains on track

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. Our performance excluding ice cream showed good sequential improvement, with a step up in volume growth."

The company remains on track to complete the demerger of its ice cream business, which includes brands such as Magnum and Ben & Jerry's, by the end of the year. However, the current US federal government shutdown has delayed the demerger process, despite the company's original plans to float the ice cream company next month with a primary listing in Amsterdam and secondary listings in New York and the UK.

Sources used: "PA Media" Note: This article has been created with Artificial Intelligence (AI).