The boss of Unilever has reiterated his plans to focus the business on its beauty products as sales were hit by ‘subdued’ markets.
Boss Fernando Fernandez has been on a mission to turn the consumer goods giant around since taking the helm in March.
After analysts dubbed the conglomerate’s annual results ‘fine but not fantastic’, the chief executive said he wants to focus on beauty and personal care brands, such as Dove and Vaseline, that have global reach.
The group underwhelmed investors as it said it expected sales growth to be at the lower end of a range of between 4 per cent and 6 per cent.
It said that annual turnover fell 3.8pc to £44bn while profits rose 2.4pc to £7.8bn.
Brands Dove and Vaseline helped to power 4.3pc sales growth at its beauty and wellbeing division.
Dove owner Unilever has been battling to revive its sales growth for years and is doubling down on its beauty brands
Unilever said that popularity for premium home care products had been ‘partially offset by a decline’ in food products – resulting in sales growth of just 0.1 per cent in the fourth quarter.
But its foods arm – which saw overall sales grow 2.5pc over the year and also contains the well-known brands mayonnaise and Knorr stock cubes – is still ‘a very attractive business,’ Fernandez said on Thursday.
‘But of course, you know, companies have to really focus the incremental investments in the ideas in which we believe there is more growth in the future, and in beauty, wellbeing, and personal care,’ he said.
It comes as the group has reportedly been trying to sell British brands Marmite, Colman’s and Bovril in a major shake-up.
There was a ‘softening’ in the market in the second half of the year, Fernandez said, as the group revealed sales grew 1.5 per cent in Europe over the year. UK growth was ‘positive’, he said.
Fernandez said prices would likely rise by around 2 per cent this year – which is below a 3 per cent average of the past decade.
Dan Coatsworth, head of markets at AJ Bell, said: ‘Unilever’s full-year numbers for 2025 were fine but not fantastic. What’s troublesome is an underwhelming outlook for 2026, with sales growth at the bottom end of the previously guided range. This reflects difficult market conditions.
‘In Western markets Unilever faces pressure from people trading down to unbranded alternatives. This is why emerging markets have been a key source of growth for Unilever because alternatives don’t exist to anywhere near the same extent, if at all.’
Unilever announced plans to cut 7,500 jobs in April and last year sold beauty brand Kate Somerville to pop star Selena Gomez’s Rare Beauty group and British healthy snack brand Graze to the owners of Candy Kittens.
It has also been acquiring trendsetters like British deodorant seller Wild and soap brand Dr Squatch.
Last year, it spun off its ice cream division, The Magnum Ice Cream Company, which owns Cornetto and Ben & Jerry’s, was floated in Amsterdam in December.
The £7billion float, which included secondary listings in London and New York, was delayed due to the US federal shutdown.
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