Unilever plc ( (UL) ) has released its Q4 earnings. Here is a breakdown of the information Unilever plc presented to its investors.
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Unilever plc is a multinational company operating in the consumer goods industry, producing a wide range of products in beauty, personal care, home care, food, and ice cream sectors. It is recognized for its diverse portfolio of brands and global market presence.
Unilever’s full-year 2024 earnings report highlights a 4.2% underlying sales growth, driven by a 2.9% increase in volume, and a turnover increase to €60.8 billion. The company has noted a significant expansion in gross margins, contributing to improved profitability despite some declines in operating profit due to restructuring and disposals.
Key financial metrics include a 12.6% rise in underlying operating profit to €11.2 billion and an underlying operating margin increase to 18.4%. The Beauty & Wellbeing and Personal Care divisions led growth with sales increases of 6.5% and 5.2% respectively. Unilever’s strategic focus on its Power Brands, comprising over 75% of turnover, proved effective with a 5.3% sales growth driven by strong volume performance.
Concluding the year, Unilever is preparing for the separation of its Ice Cream business, scheduled for completion by the end of 2025, and has announced a new €1.5 billion share buyback program. The management anticipates continued sales growth within the range of 3% to 5% for 2025, despite a slow start, supported by its strategic initiatives and market positioning.
Overall, Unilever’s performance in 2024 reflects its strategic efforts in portfolio management and operational efficiencies, positioning it well for future growth amidst challenging market conditions.
