VALUATION HIGHLIGHTS

1. Personal Care constitutes 54% of the Trefis price estimate for Unilever Group's stock.
2. Foods & Refreshment constitutes 28% of the Trefis price estimate for Unilever Group's stock.
3. Home Care constitutes 17% of the Trefis price estimate for Unilever Group's stock.

WHAT HAS CHANGED?

Latest Earnings: Full Year 2025

Unilever Group reported underlying sales growth of 4.2% for the full year, with turnover reaching 61.2 billion Euros. Underlying operating profit increased to 10.5 billion Euros, a 5.6% rise, while underlying EPS grew by 7.1% to 2.84 Euros. Performance was primarily driven by a 3.3% increase in volume and a 0.9% contribution from price, reflecting a shift toward volume-led growth across most business groups, particularly in Power Brands.

Note: Unilever Group's FY'25 ended on December 31, 2025.

Separation of Ice Cream Business

Unilever is moving forward with the full legal separation of its Ice Cream business, which includes iconic brands like Ben & Jerry's and Magnum. This strategic pivot is designed to transform Unilever into a higher-growth, higher-margin company by focusing on its four remaining business groups: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition. The separation is expected to be completed by the end of 2025, allowing for a cleaner portfolio and more specialized management of the distinct route-to-market requirements of the frozen goods sector.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Unilever Group's value that present opportunities for upside or downside to the current Trefis price estimate:

Beauty & Wellbeing

• Health & Wellbeing Expansion: This high-growth segment, including brands like Liquid I.V. and Olly, continues to deliver double-digit growth. If Unilever can maintain a 10% to 12% growth rate in this category, it represents a significant upside to Trefis estimates which generally model mid-single digit growth for the broader division.


• Premiumization Margins: Success in Prestige Beauty brands like Dermalogica and Hourglass is boosting divisional margins. A 100-basis-point improvement in operating margin due to a richer product mix could see a meaningful valuation lift, though downside risks remain if consumer spending on premium skincare softens in key markets like China.

For additional details, select a division from the interactive Trefis split for Unilever Group at the top of the page.

BUSINESS SUMMARY

Unilever Group is a global consumer goods giant that operates under a brand-led model, focused on providing essential products in beauty, personal care, home care, and nutrition to over 3.4 billion consumers daily.

SOURCES OF VALUE

The Beauty & Wellbeing and Personal Care segments represent the core of Unilever's valuation due to their superior margins and high levels of brand loyalty.

Portfolio of 30 Power Brands

Unilever's valuation is anchored by 30 "Power Brands," including Dove, Rexona, and Hellmann's, which account for approximately 75% of total turnover. These brands grew at 5.5% in the recent year, significantly outperforming the rest of the portfolio and demonstrating massive scale and pricing power in fragmented global markets.

Leading Emerging Markets Presence

Unilever derives nearly 60% of its revenue from emerging markets, providing a massive installed base and a structural growth advantage over peers more concentrated in saturated Western markets. This footprint allows Unilever to capture the rise of the middle class in regions like India and Southeast Asia.

KEY TRENDS

Growth Action Plan Implementation

Unilever is currently executing its Growth Action Plan (GAP), which focuses on doing "fewer things, better, with greater impact." This involves stepping up investment behind the Power Brands, scaling the most promising innovations, and driving a performance-oriented culture to close the gap between underlying sales growth and total shareholder return.

Optimizing Portfolio Through Disposals

The industry-wide trend toward portfolio simplification is a central theme for Unilever. Following the announced Ice Cream demerger, the company is looking to shed non-core, slower-growing assets to focus capital on high-growth segments like Health & Wellbeing and Prestige Beauty, aiming for a more concentrated and agile corporate structure.

Digital Commerce and Data Analytics

Unilever is aggressively shifting toward digital-first commerce, with e-commerce now representing 18% of total turnover. The company is utilizing AI and advanced data analytics to optimize its supply chain and personalize digital marketing, which is crucial for maintaining market share against digitally native boutique brands.