Unilever Boss Eyes Growth in Beauty as Sales Slow

Unilever's chief executive, Fernando Fernandez, is pivoting the company's strategy to emphasize its beauty and personal care divisions. This comes as the consumer goods giant navigates 'subdued' market conditions, which impacted overall sales. Fernandez highlighted brands like Dove and Vaseline as key drivers of growth, with their division achieving a 4.3% sales increase.

Despite the focus on beauty, Unilever's food products also remain an 'attractive business,' though growth in this segment was marginal. The company projects sales growth for 2026 to be at the lower end of its 4-6% range, reflecting a softening market experienced in the latter half of the past year. Annual turnover declined by 3.8% to £44bn, while profits rose 2.4% to £7.8bn.

This strategic realignment follows recent divestments, including the sale of Kate Somerville and the spin-off of its ice cream division. Unilever has also announced plans to cut 7,500 jobs. Fernandez indicated that price increases are expected to be around 2% this year, below the decade's average. The company is strategically investing in areas with higher future growth potential, particularly in beauty, wellbeing, and personal care.

Market analysts noted that while Unilever's full-year results were 'fine but not fantastic,' the outlook for 2026 is underwhelming. Challenges in Western markets include consumers trading down to unbranded alternatives, making emerging markets a crucial growth area for the company.