British consumer goods giant Unilever said on Thursday, April 24, the impact of US tariffs on its products would be “limited”, as it reported a dip in first quarter revenue.
The group whose products range from Dove soap to Ben & Jerry’s ice cream maintained its 2025 outlook despite the uncertainty posed by US President Donald Trump’s baseline 10 percent tariffs on global imports.
“Heightened global macroeconomic uncertainty is a fact,” new chief executive Fernando Fernandez said in an earnings statement, after Trump this month paused plans to impose higher duties on dozens of countries.
But Unilever added that “the direct impact of tariffs on our profitability is expected to be limited and manageable,” thanks to recent U.S. investments and a mostly local supply chain.
Sales down 0.9%
The group said revenue dropped less than one percent to 14.8 billion euros (USD 16.8 billion) in the first quarter, a 0.9% decrease compared to the first three months of 2024.
However, Unilever maintained its growth forecasts for 2025, expecting underlying sales growth to be within a 3% to 5% range.
“The quality of our innovation programme, the strong investment behind our brands and our improving competitiveness give us confidence we will deliver on our full year plans,” Fernandez said during an investor conference call.
Fernandez took the helm in March, succeeding Hein Schumacher, who stepped down after less than two years in the role, during which time the company posted two sets of disappointing annual results.
Unilever is undergoing a major overhaul, which includes cutting around 7,500 jobs and spinning off its ice cream division into a standalone business.
The Magnum Ice Cream Company is set to operate from July 1.
The overhaul comes amid pressure from activist investors, including American billionaire Nelson Peltz, to revive growth.
The group added Thursday that its cost-cutting program was ahead of schedule and is expected to generate around 550 million euros in savings by the end of 2025, contributing to the total savings target of 800 million euros.
