Unilever closed FY2025 with underlying sales growth (USG) of 3.5%, accelerating to 4.2% in the fourth quarter, supported by 2.1% volume growth in Q4. Full-year turnover declined 3.8% to €50.5 billion, reflecting adverse currency and net disposals following the ice cream demerger. For beauty and personal care insiders, the headline is clear: Beauty & Wellbeing and Personal Care remain the company’s growth engines, together accounting for more than half of Group turnover.
Beauty & Wellbeing: Premium, Science-Led Growth
Beauty & Wellbeing delivered 4.3% USG in FY2025, with balanced contributions from volume (2.2%) and price (2.1%):
- Fourth-quarter USG accelerated to 4.7%, with volume up 2.8%
- Full-year turnover reached €12.8 billion, down 2.3% on a reported basis, while underlying operating margin stood at 19.2%, down 20bps year-over-year
Growth drivers were concentrated in premium and science-led platforms:
- Wellbeing posted double-digit growth, led by Nutrafol and Liquid I.V., with Olly up high single digits
- Core Skin Care grew mid-single digits, with Vaseline delivering double-digit growth for the third consecutive year
- Hair Care was low-single digit, as positive price offset softer volumes; Dove grew double-digit on its fiber repair technology launch
- Prestige Beauty posted low-single digit growth, with strong double-digit gains at Hourglass and K18, while Dermalogica and Paula’s Choice returned to growth in the second half
- Underlying operating profit for the division was €2.5 billion, down 3.2%, as higher brand and marketing investment offset overhead efficiencies
Personal Care: Pricing-Led Competitive Growth
Personal Care generated 4.7% USG in FY2025, driven primarily by price (3.6%), with volume up 1.1%:
- Q4 USG strengthened to 5.1%, with positive volumes and accelerating price
- Full-year turnover reached €13.2 billion, down 3.4% reported
- Underlying operating margin expanded 50bps to 22.6%, marking one of the strongest margin profiles in the portfolio.
- Commodity-driven price increases supported top-line growth, while premium innovation—particularly in Dove—helped sustain volume in developed markets
Margin, Mix and Portfolio Reshaping
Group underlying operating margin expanded 60bps to 20.0% in FY2025, supported by gross margin expansion and disciplined overhead management. Power Brands, representing 78% of turnover, grew 4.3% with volume up 2.2%.
Strategically, 2025 marked a decisive shift toward higher-growth beauty and personal care spaces:
- Acquisition of Dr. Squatch (98.7%) for €1.24 billion, expanding natural personal care in North America
- Full acquisition of Nutrafol, consolidating the ingestible beauty platform
- Majority stake in Minimalist, strengthening premium actives-led beauty in India
- Acquisition of Wild, reinforcing refillable and natural deodorant credentials
- The Ice Cream demerger, completed in December 2025, leaves a simplified four-division structure centered on Beauty & Wellbeing, Personal Care, Home Care and Foods
Insider Takeaway
In a slowing global market, Unilever’s beauty and personal care divisions are delivering competitive USG, positive volume, and resilient margins. The data points to three structural priorities:
- Premiumization through science-led claims and ingredient platforms.
- Margin discipline with reinvestment into brand and marketing.
- Portfolio rotation toward high-growth, high-multiple beauty assets.
For suppliers, retailers and brand competitors, the signal is unmistakable: Unilever is concentrating capital and innovation behind Beauty & Wellbeing and Personal Care—and expects them to carry the growth mandate into 2026.
