Unilever has finalized a transformative fiscal year, reporting a **4.6%** increase in net profit for its retained brands, which reached **$6.8 billion** (€5.7 billion). This performance follows the successful demerger of its ice cream business, including brands like Magnum and Ben & Jerry’s, which was completed in late 2025. The company is now operating under a leaner structure led by CEO Fernando Fernandez. While the ice cream spinoff helped sharpen focus, total group revenue slipped **3.8%** to **$50.5 billion** (€50.5 billion) due to currency fluctuations and the impact of business disposals. Growth and Sector Performance Despite the drop in total turnover, underlying sales growth (USG) remained healthy at **3.5%**. This was driven by a **1.5%** increase in volume and **2.0%** in pricing. The fourth quarter showed particular strength, with USG accelerating to **4.2%**. Unilever's "Power Brands," which now represent **78%** of total turnover, are the primary engine of this growth. These brands saw an underlying sales increase of **4.3%**, outperforming the broader portfolio. * **Personal Care:** Grew **4.7%**, supported by strong innovation in brands like Dove. * **Beauty & Wellbeing:** Increased **4.3%**, with double-digit growth in the health-focused segments. * **Home Care:** Reported a **2.6%** rise, showing resilience in emerging markets. 2026 Market Outlook Management has issued a cautious forecast for 2026, warning of "slower market conditions" in developed economies. Sales growth for the coming year is expected to land at the bottom end of the company’s **4% to 6%** multi-year target range. Consumer behavior in the United States and Europe remains a challenge. Shoppers in these regions are increasingly trading down to unbranded or private-label alternatives due to cost-of-living pressures. In contrast, emerging markets—specifically India and Indonesia—continue to provide a vital buffer, with the latter seeing a significant profit surge post-spinoff. Financial Health and Efficiency Operational efficiency has improved, with the underlying operating margin expanding by **60 basis points** to reach **20.0%**. This was bolstered by a productivity program that delivered **$670 million** (€670 million) in savings by the end of 2025, exceeding initial targets. The company remains committed to shareholder returns, announcing a new share buyback program of up to **$1.5 billion** (€1.5 billion) set to begin in the second quarter of 2026. This follows **$6.0 billion** already returned to shareholders through dividends and buybacks over the previous year. Unilever is now prioritizing its "Beauty, Wellbeing, and Personal Care" divisions, which account for over half of its revenue. The strategic pivot aims to capture higher-margin premium segments and expand digital commerce footprints to offset the stagnation expected in traditional Western retail channels.