Unilever (ULVR) H2 2024 earnings summary

Executive summary

• Growth Action Plan (GAP) launched in late 2023 drove operational improvements, focusing on top brands, productivity, and portfolio reshaping.

• Achieved 4.2% underlying sales growth in FY 2024, with 2.9% volume and 1.3% price growth, driven by Power Brands and operational improvements.

• Productivity program reduced 4,300 roles in 2024, targeting 7,500 by end of 2025.

• Major portfolio shift underway with planned separation of Ice Cream business by end of 2025.

• Sustainability commitments advanced, including 76% GHG reduction (Scope 1 & 2), 23% reduction in virgin plastics, and 533k hectares under regenerative practices.

Financial highlights

• Underlying sales growth of 4.2% for 2024, led by 2.9% volume and 1.3% price.

• Gross margin expanded by 280 basis points to 45%, surpassing pre-COVID levels.

• Underlying operating profit up 12.6% to €11.2 billion; underlying operating margin improved 170 basis points to 18.4%.

• Underlying EPS rose 14.7% to €2.98.

• Free cash flow was €6.9 billion; net debt at year-end €24.5 billion, with net debt/EBITDA at 1.9x.

Outlook and guidance

• 2025 underlying sales growth expected within 3–5% range, with a slower start and improvement as pricing accelerates.

• Modest improvement in underlying operating margin anticipated for 2025, realized mainly in the second half.

• Net finance costs expected around 3% of average net debt; underlying tax rate around 26%.

• New €1.5 billion share buyback announced for 2025.

• Capex to remain above 3% of turnover; restructuring costs at 1.4% of turnover.