For Unilever, Q1 of 2025 had mixed outcomes. Overall, the consumer goods giant’s sales dropped by 0.9% to €14.8 billion ($16.8 billion) in the three months to March 31 (including 2.7% from net disposals), yet grew 3% on an underlying sales growth (USG).

Beauty’s contribution gave a push to Unilever’s overall 3% USG. The conglomerate's Beauty & Wellbeing segment delivered an USG of 7.4%, powered by a volume growth of 5.6%, and a 1.7% price growth. This was largely influenced by Health & Wellbeing categories, as well as core personal care brands.

Health & Wellbeing brands Nutrafol (acquired in 2022) and Olly (acquired in 2019) reported double-digit growth. Nutrafol’s growth was bolstered by the debut of Nutrafol Skin, a doctor-formulated daily supplement that the brand said targets the root cause of acne in women. Dove hair saw high-single-digit growth, supported by the launch of its Scalp + Hair Therapy range. Core skincare also contributed to the company’s growth, with Vaseline and Pond’s delivering mid-single-digit gains, particularly in the US and India.

Beauty & Wellbeing’s income climbed by 4.1% and personal care increased by 5.1%, with a USG of 4.8%, led by the continued strength of sales of deodorants and body washes. Dove once again led growth, contributing to 40% of the segment's turnover, which Unilever believes benefited from its Super Bowl ad campaign.

Highlights included double-digit sales growth led by Dove’s Whole Body Deodorant line, and premium Body Washes, which achieved high-single-digit growth. Brands including Rexona and Axe also performed well for the deodorant category, led by innovation in long-wear protection and sensory fragrance collections.

Conversely, prestige beauty saw a decline in sales during the Q1 period, although no figures were provided in reports. Unilever attributed this to “market softness,” as discretionary spending showed signs of tightening. The category’s underperformance stands in contrast to previous quarters, where brands such as Tatcha, Hourglass, and Living Proof consistently delivered strong results.

The news of slowdowns in prestige follows reports that Unilever is consideringdivesting Kate Somerville and REN Clean Skincare, both in the prestige division, as part of a broader restructuring plan.

Still, the company insisted it remains committed to the category’s longevity. “Creating desirability at scale for our brands and brilliant in-market execution are the pillars of our plan to turn Unilever into a consistently higher-performing business. We are moving at pace, confident in making progress in 2025 and beyond,” Unilever CEO Fernando Fernandez said in a statement.

Unilever’s Q1 results were delivered against a major corporate restructuring. During the three-month period, the company laid off 6,000 jobs as part of its ongoing restructuring plan, aimed at saving $800 million over three years by eliminating 7,500 office-based roles.

Despite an overall decline and softness in prestige beauty, Unilever reaffirmed its full-year forecast of 3%-5% underlying sales growth. The company anticipates a “modest improvement” in margin compared to 18.4% in 2024. Fernandez also said that the direct impact of US tariffs on profitability is expected to be “limited and manageable.”

“Heightened global macroeconomic uncertainty is a fact; however, the quality of our innovation program, the strong investment behind our brands, and our improving competitiveness give us confidence we will deliver on our full year plans,” Fernandez added.

Unilever’s Q1 report suggests that while the road ahead may be uneven and provide challenges in the prestige segment, its mass brands and wellness innovations are well positioned to anchor continued growth.

Key Details:

Beauty & Wellbeing

• Underlying Sales Growth (USG): 7.4%
• Volume Growth (UVG): 5.6%
• Price Growth (UPG): 1.7%
• Contribution to Group Turnover: 21%

Personal Care

• Underlying Sales Growth (USG): 4.8%
• Volume Growth (UVG): 1.4%
• Price Growth (UPG): 3.4%
• Contribution to Group Turnover: 23%

Looking Forward

In a CPG environment where traditional models of reach and persuasion are no longer viable, Fernandez is committed to driving the company to look outward and forward. He shared on the earnings call, “For the next phase of our transformation, our task is to make Unilever a world-class company in terms of brand demand creation and market execution.”

What does this mean in practice? 

• Ruthless obsession with the consumer, focusing on what it takes to drive demand and create desire at scale.
• Portfolio quality over portfolio scale, making sharper capital allocation choices to organically double down on the most profitable strongholds while enhancing the portfolio through disposals of nonstrategic assets and bolt-on acquisitions in premium segments.
• Building a marketing and sales machine that ensures the quality of execution consistently matches the increasing quality of our innovation.
• Completing its productivity program ahead of plan and establishing productivity as a habit to fuel investment behind our brands and build a virtuous circle of growth. 
• Recapturing the spirit of pioneering that has defined Unilever for so much of its existence, but which, in recent times, had been lost by becoming too inwardly focused. 

“As we look ahead, market conditions are likely to be volatile and uncertain, with the global economy probably operating below its long-term potential for some time to come. But we are well prepared,” Fernadez said.